Direct Taxes Code, 2010

Chapter: I
PRELIMINARY
Clause 1	:	Short title, extent and commencement.
Chapter: II
BASIS OF CHARGE
Clause 2	:	Liability to pay, and charge of, income-tax.
Clause 3	:	Scope of total income.
Clause 4	:	Residence in India.
Clause 5	:	Income deemed to accrue in India.
Clause 6	:	Income deemed to be received in the financial year.
Clause 7	:	Dividend income.
Clause 8	:	Total income to include income of any other person.
Clause 9	:	Income of individual to include income of spouse, minor child and others.
Clause 10	:	Income not included in the total income.
Clause 11	:	Persons, entity or funds not liable to income-tax.
Chapter: III
COMPUTATION OF TOTAL INCOME
Chapter: I
GENERAL
Clause 12	:	Computation of total income.
Clause 13	:	Classification of sources of income.
Clause 14	:	Computation of income from ordinary sources.
Clause 15	:	Computation of income from special sources.
Clause 16	:	Apportionment of income between spouses governed by Portuguese Civil Code.
Clause 17	:	Avoidance of double taxation.
Clause 18	:	Expenditure not to be allowed as deduction.
Clause 19	:	Amount not deductible where tax is not deducted at source.
Chapter: A
Income from employment
Clause 20	:	Income from employment.
Clause 21	:	Computation of income from employment.
Clause 22	:	Scope of gross salary.
Clause 23	:	Deductions from gross salary.
Chapter: B
Income from house property
Clause 24	:	Income from house property.
Clause 25	:	Computation of income from house property.
Clause 26	:	Scope of gross rent.
Clause 27	:	Deductions from gross rent.
Clause 28	:	Provision for advance rent received.
Clause 29	:	Provision for arrears of rent received.
Chapter: C
Income from business
Clause 30	:	Income from business.
Clause 31	:	Business when teated distinct and separate.
Clause 32	:	Computation of income from business.
Clause 33	:	Gross earnings.
Clause 34	:	Determination of business expenditure.
Clause 35	:	Determination of operating expenditure.
Clause 36	:	Determination of finance charges.
Clause 37	:	Determination of capital allowances.
Clause 38	:	Determination of depreciation.
Clause 39	:	Determination of initial depreciation.
Clause 40	:	Deduction for terminal allowance.
Clause 41	:	Deduction for scientific research and development allowance.
Clause 42	:	Computation of proft on transfer of a business capital asset.
Clause 43	:	Special provisions relating to business reorganisation.
Clause 44	:	Meaning of actual cost.
Clause 45	:	Meaning of written down value and adjusted value of assets.
Chapter: D
Capital gain
Clause 46	:	Capital gains.
Clause 47	:	Income from certain transfers not to be treated as capital gains
Clause 48	:	Financial year of taxability.
Clause 49	:	Computation of income from transfer of any investment asset.
Clause 50	:	Full value of consideration.
Clause 51	:	Deduction for cost of acquisition etc.
Clause 52	:	Indexed cost of acquisition or improvement.
Clause 53	:	Cost of acquisition of an investment asset.
Clause 54	:	Relief for rollover of investment asset.
Clause 55	:	Relief for follover of investment asset.
Chapter: E
Income from residuary sources
Clause 56	:	Income from residuary sources.
Clause 57	:	Computation of income from residuary sources.
Clause 58	:	Gross residuary income.
Clause 59	:	Deductions from gross residuary income.
Chapter: III
AGGREGATION OF INCOME
Clause 60	:	Aggregation of income under a head of income.
Clause 61	:	Aggregation of income from ordinary sources.
Clause 62	:	Aggregation of income from special sources.
Clause 63	:	Determination of total income.
Clause 64	:	Special provisions relating to business reorganisation or conversion of a company into a Limited liability partnership.
Clause 65	:	Aggregation of losses in case of change in constitution of unincorporated body.
Clause 66	:	Aggregation of losses in the case of certain companies.
Clause 67	:	Aggregation of loss not to be allowed in the case of filing of return after due date.
Chapter: IV
TAX INCENTIVES
Clause 68	:	Deductions from gross total income from ordinary sources.
Clause 69	:	Deduction for savings.
Clause 70	:	Deduction from life insurance.
Clause 71	:	Deduction for health insurance.
Clause 72	:	Deductions for education of children.
Clause 73	:	Limit on deductions under sections 70, 71 and 72.
Clause 74	:	Deduction of interest on loan taken for house property.
Clause 75	:	Deduction of interest on loan taken for higher education.
Clause 76	:	Deduction for Medical treatment, etc.
Clause 77	:	Deduction to a person with disability.
Clause 78	:	Deduction for medical treatment and maintenance of a dependant person with disability.
Clause 79	:	Deduction of contribution or donations to certain funds or non-profit organisations.
Clause 80	:	Deduction for rent paid.
Clause 81	:	Deduction for political contributions.
Clause 82	:	Deduction of income of Investor Protection Fund.
Clause 83	:	Deduction of royalty income of authors.
Clause 84	:	Deduction of royalty on patents.
Clause 85	:	Deduction of income of cooperative society from banking activities.
Clause 86	:	Deduction of income of primary Co-operative societies.
Chapter: V
MAINTENANCE OF ACCOUNTS AND OTHER RELATED MATTERS
Clause 87	:	Maintenance of accounts
Clause 88	:	Audit of accounts and reporting of international transaction.
Clause 89	:	Method of accounting.
Chapter: IV
SPECIAL PROVISIONS RELATING TO THE COMPUTATION OF TOTAL INCOME OF NON-PROFIT ORGANISATIONS
Clause 90	:	Applicability of this Chapter.
Clause 91	:	Total income of a non-profit organisation.
Clause 92	:	Computation of total income of a non-proft organisation.
Clause 93	:	Gross receipts of a non-profit organisation.
Clause 94	:	Outgoings of a non-profit organisation.
Clause 95	:	Modes of investment.
Clause 96	:	Deemed income of a non-profit organisation.
Clause 97	:	Use or application of funds or assets for the benefit of interested person.
Clause 98	:	Registration of a nonprofit organisation.
Clause 99	:	Maintenance of accounts and tax audit.
Clause 100	:	Anonymous donations.
Clause 101	:	Consequences of conversion of a non-profit organisation.
Clause 102	:	Provisions of this Chapter not to apply in certain cases.
Clause 103	:	Interpretations in this Chapter.
Chapter: V
COMPUTATION OF BOOK PROFIT
Clause 104	:	Computation of book profit.
Clause 105	:	Preparation of profit and loss account for computing book profit.
Clause 106	:	Tax credit for tax paid on book profit.
Clause 107	:	Application of other provisions of this Code.
Chapter: VI
PROVISIONS REATING TO TAX ON INCOME RECEIVED FROM VENTURE CAPITAL COMPANY AND VENTURE CAPITAL FUND
Clause 108	:	Tax on income received from venture capital company and venture capital fund.
Chapter: VII
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED PROFITS OF DOMESTICE COMPANIES
Clause 109	:	Tax on distributed profits of domestic companies.
Chapter: VIII
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME
Clause 110	:	Tax on income distributed by mutual fund or life insurer.
Chapter: IX
CHARGE OF BRANCH PROFITS TAX
Clause 111	:	Tax on branch profits
Chapter: X
CHARGE OF WEALTH TAX
Clause 112	:	Tax on net wealth
Clause 113	:	Computation of net wealth
Clause 114	:	Net wealth to include certain assets.
Chapter: XI
SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX CLAUSES
Clause 115	:	Disallowance of expenditure having regard to fair market value
Clause 116	:	Determination of income from international transaction having regard to arm's length price.
Clause 117	:	Determination of arm's length price.
Clause 118	:	Advance pricing agreement.
Clause 119	:	Avoidance of income-tax by transactions resulting in transfer of income to non-residents.
Clause 120	:	Avoidance of tax by sale and buy-back transaction in security.
Clause 121	:	Avoidance of tax by buy and sale back transaction in security.
Clause 122	:	Broken-period income accruing from a debt instrument.
Clause 123	:	General anti-avoidance rule.
Clause 124	:	Interpretations in this Chapter.
Clause 125	:	Presumption of purpose.
Chapter: XII
TAX ADMINISTRATION AND PROCEDURE
Chapter: A
TAX ADMINISTRATION
Clause 126	:	Income-tax authorities.
Clause 127	:	Appointment and control of income-tax authorities.
Clause 128	:	Power of higher authorities.
Clause 129	:	Powers of the Board to issue instructions.
Clause 130	:	Jurisdiction of income-tax authorities.
Clause 131	:	Jurisdiction of Assessing Officers.
Clause 132	:	Power to transfer cases.
Clause 133	:	Change of incumbent.
Clause 134	:	Powers regarding discovery and production of evidence.
Clause 135	:	Search and seizure.
Clause 136	:	Power to requisition material taken into custody.
Clause 137	:	Retention and release of books of account or documents seized or requisitioned.
Clause 138	:	Delivery of material belonging to other persons.
Clause 139	:	Retention and application of seized or requisitioned assets.
Clause 140	:	Power to call for information.
Clause 141	:	Power of Survey.
Clause 142	:	Power to disclose information in respect of assessee.
Clause 143	:	Proceedings before income-tax authorities to be judicial proceedings.
Chapter: B
ASSESSMENT PROCEDURE
Clause 144	:	Self-reporting of tax bases.
Clause 145	:	Tax return preparer.
Clause 146	:	Issue of notice to furnish return.
Clause 147	:	Self-assessment tax.
Clause 148	:	Acknowledgment of return.
Clause 149	:	Processing of return.
Clause 150	:	Notice for inquiry before assessment.
Clause 151	:	Special audit.
Clause 152	:	Determination of value of assets.
Clause 153	:	Determination of arm's length price.
Clause 154	:	Determination of an impermissible avoidance agreement and consequences thereof.
Clause 155	:	Assessment.
Clause 156	:	Best judgment assessment.
Clause 157	:	Directions by Joint Commissioner for assessment.
Clause 158	:	Direction by Dispute Resolution Panel for assessment.
Clause 159	:	Re-opening of assessment.
Clause 160	:	Approval for search assessment.
Clause 161	:	Rectification of mistake.
Clause 162	:	Notice of demand.
Clause 163	:	Time limits for completion of assessment or reassessments.
Chapter: C
PROCEDURE FOR ASSESSMENT IN SPECIAL CASES
Clause 164	:	Representative assessee.
Clause 165	:	Rights and obligations of a representative assessee.
Clause 166	:	Direct assessment or recovery not barred.
Clause 167	:	Remedy against property in case of representative assessee.
Clause 168	:	Assessment upon business reorganisation.
Clause 169	:	Assessment after partition of a Hindu undivided family.
Clause 170	:	Assessment of non-resident in respect of occasional shipping business.
Clause 171	:	Assessment of persons leaving India.
Clause 172	:	Assessment of an unincorporated body formed for a particular event or purpose.
Clause 173	:	Assessment of persons likely to transfer property to avoid tax.
Clause 174	:	Discontinued business.
Clause 175	:	Assessment of unincorporated body in case of change in its constitution.
Clause 176	:	Assessment on retirement or death of participant.
Clause 177	:	Assessment of a deductor or collector.
Chapter: D
APPEALS AND REVISION
Clause 178	:	Appeal to Commissioner(Appeals).
Clause 179	:	Form of appeal and limitation
Clause 180	:	Procedure in appeal.
Clause 181	:	Powers of Commissioner (Appeals).
Clause 182	:	Appellate Tribunal.
Clause 183	:	Appeals to Appellate Tribunal.
Clause 184	:	Stay of deamand by Appellate Tribunal.
Clause 185	:	Orders of Appellate Tribunal.
Clause 186	:	Constitution of Benches and procedure of Appellate Tribunal.
Clause 187	:	Appeal to High Court.
Clause 188	:	Case before High Court to be heard by not less than two Judges.
Clause 189	:	Appeal to Supreme Court
Clause 190	:	Hearing before Supreme Court.
Clause 191	:	Revision of orders prejudicial to revenue.
Clause 192	:	Revision of other orders.
Chapter: XIII
COLLECTION AND RECOVERY OF TAX
Chapter: A
DEDUCTION OF TAX AT SOURCE
Clause 193	:	Deduction or collection of tax at source and advance payment.
Clause 194	:	Direct payment.
Clause 194	:	Direct payment.
Clause 195	:	Liability to deduct tax at source.
Clause 196	:	Payment of income and deduction of tax.
Clause 197	:	Certificate for lower or no deduction of tax.
Clause 198	:	Obligation of deductor.
Clause 199	:	Reporting of payments without deduction of tax.
Clause 200	:	No deduction of tax in certain cases.
Clause 201	:	Credit for tax collected.
Chapter: B
COLLECTION OF TAX AT SOURCE
Clause 202	:	Tax collection at source.
Clause 203	:	Credit for tax collected.
Clause 204	:	Interpretations under Sub-chapters A and B.
Chapter: C
ADVANCE TAX
Clause 205	:	Liability to pay advance tax
Chapter: D
TAX CREDIT FOR RELIEF IN RESPECT OF ARREARS OR ADVANCE RECEIPTS
Clause 206	:	Tax relief for arrears or advance receipts.
Chapter: E
FOREIGN TAX CREDIT
Clause 207	:	Foreign tax credit.
Chapter: F
PAYMENT OF WEALTH-TAX
Clause 208	:	Payment of wealth-tax
Chapter: G
INTEREST PAYABLE TO THE CENTRAL GOVERNMENT
Clause 209	:	Interest for default in furnishing retrun of tax basis.
Clause 210	:	Interest for default in payment of advance income-tax.
Clause 211	:	Interest for deferment of advance income-tax.
Clause 212	:	Interest on excess refund.
Clause 213	:	Interest payable on demand raised.
Clause 214	:	Interest for failure to deduct or collect or pay tax.
Chapter: H
REFUNDS
Clause 215	:	Refunds.
Clause 216	:	Interest on refund.
Clause 217	:	Person entitled to claim refund in certain special cases.
Chapter: I
RECOVERY
Clause 218	:	Recovery by Assessing Officer.
Clause 219	:	Recovery by Tax Recovery Officer.
Clause 220	:	Modes of recovery.
Clause 221	:	Tax Recovery Officer by whom recovery is to be effected.
Clause 222	:	Recovery of tax arrear in respect of non-resident from his assets.
Clause 223	:	Recovery in case of a company in liquidation.
Clause 224	:	Liability of manager of a company.
Clause 225	:	Joint and several liability of participants.
Clause 226	:	Recovery through State Government.
Clause 227	:	Recovery of tax in pursuance of agreements with foreign countries specified territory.
Clause 228	:	Tax clearance certificate in certain cases.
Clause 229	:	Recovery by suit or under other law not Affected.
Chapter: XIV
PENALTIES
Clause 230	:	Penalty for under reporting of tax bases.
Clause 231	:	Penalty where search has been initiated.
Clause 232	:	Penalty for other defaults.
Clause 233	:	Procedure.
Clause 234	:	Bar of limitation for imposing penalty.
Chapter: XV
PROSECUTION
Clause 235	:	Chapter not in derogation of any other law.
Clause 236	:	Contravention of any restraint order
Clause 237	:	Failure to comply with the provisions of clause (d) of sub-section (2) of section 135.
Clause 238	:	Removal, concealment, transfer or delivery of property to thwart tax recovery.
Clause 239	:	Failure to comply with the provisions of sub-sections (1) and (3) of section 223.
Clause 240	:	Failure to pay tax deducted or collected at source or to pay dividend or income distribution tax.
Clause 241	:	Wilful attempt to evade tax.
Clause 242	:	Failure to furnish returns of tax bases.
Clause 243	:	Failure to furnish statements, reports etc.
Clause 244	:	Failure to comply with direction under this Code.
Clause 245	:	False statement in verification.
Clause 246	:	Falsification of books of account or documents.
Clause 247	:	Abetment of false return.
Clause 248	:	Offences by companies, etc.
Clause 249	:	Proof of entries in records or documents.
Clause 250	:	Presumption as to assets, and books of account, in certain cases.
Clause 251	:	Presumption as to culpable mental state.
Clause 252	:	Prosecution to be at instance of Chief Commissioner or Commissioner.
Clause 253	:	Punishment for second and subsequent offences.
Clause 254	:	Offences to be non-cognizable
Clause 255	:	Disclosure of information by public servants.
Chapter: XVI
ADVANCE RULINGS AND DISPUTE RESOULTION
Clause 256	:	Scope of ruling and dispute resolution.
Clause 257	:	Authority for Advance Rulings and Dispute Resolution.
Clause 258	:	Procedure for advance ruling.
Clause 259	:	Income-tax authority or Appellate Tribunal not to proceed in certain cases.
Clause 260	:	Applicability of advance ruling.
Clause 261	:	Advance ruling to be void in certain circumstances.
Clause 262	:	Procedure for dispute resolution.
Clause 263	:	Stay of demand by the Authority.
Clause 264	:	Power to rectify a mistake.
Clause 265	:	Powers of Authority.
Clause 266	:	Procedure of Authority.
Clause 267	:	Interpretations in this Chapter.
Chapter: XVII
SETTLEMENT OF CASES
Clause 268	:	Income-tax Settlement Commission.
Clause 269	:	Jurisdiction and powers of Settlement Commission.
Clause 270	:	Vice-Chairperson to act as Chairperson.
Clause 271	:	Power of Chairperson to transfer cases from one Bench to another.
Clause 272	:	Decision to be by majority.
Clause 273	:	Application for settlement of cases.
Clause 274	:	Additional amount of income-tax.
Clause 275	:	Admission of application.
Clause 276	:	Further inquiry into the case.
Clause 277	:	Order of settlement.
Clause 278	:	Payment of tax on settlement.
Clause 279	:	Power of Settlement Commission to order provisional attachment to protect revenue.
Clause 280	:	Revival of proceedings before Assessing Officer.
Clause 281	:	Powers of Settlement Commission after admission.
Clause 282	:	Inspection and furnishing reports.
Clause 283	:	Power of Settlement Commission to grant immunity.
Clause 284	:	Abatement of proceeding before Settlement Commission.
Clause 285	:	Credit for tax paid in case of abatement of proceedings.
Clause 286	:	Recovery of sums due under order of settlement.
Clause 287	:	Order of settlement to be conclusive.
Clause 288	:	Bar on subsequent application.
Clause 289	:	Proceedings to be judicial proceedings.
Clause 290	:	Interpretations in this Chapter.
Chapter: XVIII
General provisions
Clause 291	:	Agreement with foreign countries or specified territory
Clause 292	:	Permanent account number.
Clause 293	:	Tax account number.
Clause 294	:	Mode of acceptance or repayment of certain loans or deposits.
Clause 295	:	Obligation to furnish annual information return.
Clause 296	:	Certain transfers to be void.
Clause 297	:	Provisional attachment to protect revenue in certain cases.
Clause 298	:	Service of notice generally.
Clause 299	:	Authentication of notices and other documents.
Clause 300	:	Notice deemed to be valid in certain circumstances.
Clause 301	:	Service of notice when family is disrupted or unincorporated body is dissolved.
Clause 302	:	Publication of information respecting assessees in certain cases.
Clause 303	:	Appearance by registered valuer in certain matters.
Clause 304	:	Appearance by authorised representative.
Clause 305	:	Rounding off of tax bases and tax.
Clause 306	:	Indemnity.
Clause 307	:	Power to tender immunity from prosecution.
Clause 308	:	Cognizance of offences.
Clause 309	:	Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply.
Clause 310	:	Return of tax bases not to be invalid on certain grounds.
Clause 311	:	Presumption as to material found.
Clause 312	:	Bar of suits in civil courts.
Clause 313	:	Power to rescind.
Chapter: XIX
INTERPRETATIONS AND CONSTRUCTIONS CLAUSES
Clause 314	:	Interpretations in this Code.
Clause 315	:	Construction.
Chapter: XX
MISCELLANEOUS
Clause 316	:	Power to make rules.
Clause 317	:	Laying of rules, schemes and notifications before Parliament.
Clause 318	:	Repeals and savings.
Clause 319	:	Power to remove difficulties.
Schedules
Schedule-01	:	RATES OF INCOME-TAX
Schedule-02	:	RATES OF OTHER TAXES
Schedule-03	:	RATES FOR DEDUCTION OF TAX AT SOURCE
Schedule-04	:	Rates for deduction of tax at source in the case of non-resident deductee
Schedule-05	:	GENERAL PROVISIONS
Schedule-06	:	Income not included in the total income
Schedule-07	:	Persons, entity or funds not liable to income-tax
Schedule-08	:	COMPUTATION OF PROFITS OF THE INSURANCE BUSINESS
Schedule-09	:	COMPUTATION OF INCOME FROM SPECIAL SOURCES
Schedule-10	:	COMPUTATION OF PROFITS OF BUSINESS OF OPERATING A QUALIFYING SHIP
Schedule-11	:	COMPUTATION OF PROFITS OF THE BUSINESS OF MINERAL OIL OR NATURAL GAS
Schedule-12	:	COMPUTATION OF PROFITS OF THE BUSINESS OF DEVELOPING OF A SPECIAL ECONOMIC ZONE MANUFACTURE OR PRODUCTION OF ARTICLE OR THINGS OR PROVIDING OF ANY SERVICE BY A UNIT ESTABLISHED IN A SEZ
Schedule-13	:	COMPUTATION OF PROFITS OF A SPECIFIED BUSINESS
Schedule-14	:	DETERMINATION OF INCOME ON A PRESUMPTIVE BASIS
Schedule-15	:	DEPRECIATION
Schedule-16	:	CONTRIBUTIONS OR DONATIONS ELIGIBLE FOR ONE HUNDRED SEVENTY-FIVE PER CENT. DEDUCTION
Schedule-17	:	DETERMINATION OF COST OF ACQUISITION IN CERTAIN CASES
Schedule-18	:	MINERALS AND GROUP OF ASSOCIATED MINERALS
Schedule-19	:	APPROVED PROVIDENT FUNDS, APPROVED SUPERANNUATION FUNDS, APPROVED GRATUITY FUNDS
Schedule-20	:	COMPUTATION OF INCOME ATTRIBUTABLE TO A CONTROLLED FOREIGN COMPANY
Schedule-21	:	ORDERS APPEALABLE BEFORE COMMISSIONER (APPEALS)
Schedule-22	:	DEFERRED REVENUE EXPENDITURE ALLOWANCE
Chapter: Notes
Notes / Memorandum / Statement
Clause -	:	Notes on clauses, Schedules, Memorandum