MEMO - MEMORANDUM REGARDING DELEGATED LEGISLATION - Income Tax Bill, 2025

MEMORANDUM REGARDING DELEGATED LEGISLATION The provisions of the Bill, inter alia, empower the Central Government to issue notifications and the Board to make rules and issue guidelines for various purposes as specified therein. 2. Sub-clause (4) of clause 8 of the Bill empowers the Board to issue guidelines with the prior approval of the Central Government for removing any difficulty arising in giving effect to the provisions of the said clause and clause 67(10). 3. Sub-clause (15) of clause 166 of the Bill empowers the Board to issue guidelines with the prior approval of the Central Government for removing any difficulty arising in giving effect to the provisions of the sub-clauses (9) and (12) of the said clause. 4. Sub-clause (2) of clause 205 of the Bill empowers the Board to issue guidelines with the prior approval of the Central Government for removing any difficulty arising in giving effect to the provisions of the item (b) or (c) or (d) of the said sub-clause. 5. Sub-clause (8) of clause 267 of the Bill empowers the Board to issue guidelines with the prior approval of the Central Government for removing any difficulty arising in giving effect to the provisions of the said clause. 6. The Bill seeks to make provisions to lay the guidelines referred to in paragraphs 2 to 5 above shall be laid, as soon as may be, after it is made, before each House of Parliament. 7. Clause 533 of the Bill empowers the Board to make rules for carrying out the purposes of the proposed legislation, subject to the control of the Central Government. It, inter alia, seeks to empower the Board to make rules for (a) the ascertainment and determination of any class of income; (b) the manner in which and the procedure by which the income shall be arrived at in the case of (i) income derived in part from agriculture and in part from business; (ii) persons residing outside India; (iii) operations carried out in India by a non-resident; (iv) transactions or activities of a non-resident; (v) an individual who is liable to be assessed under clause 99(3) and (4); (c) the determination of the value of any perquisite chargeable to tax under the proposed legislation in such manner and on such basis as appears to the Board to be proper and reasonable; (d) the percentage on the written down value which may be allowed as depreciation for buildings, machinery, plant or furniture; (e) the matters specified in clause 62; (f) the conditions or limitations subject to which any payment of rent made by an assessee shall be deducted under clause 134; (g) the matters specified in Chapter XI; (h) the time within which any person may apply for the allotment of a Permanent Account Number, the form and the manner in which such application may be made and the particulars which such application shall contain and the transactions with respect to which Permanent Account Number shall be quoted on documents relating to such transactions under clause 262; (i) the documents, statements, receipts, certificates or audited reports which may not be furnished along with the return but shall be produced before the Assessing Officer on demand under clause 263 (2)(a); (j) the class or classes of persons who shall be required to furnish the return of income in electronic form; the form and the manner of furnishing the said return in electronic form; documents, statements, receipts, certificates or reports which shall not be furnished with the return in electronic form and the computer resource or electronic record to which such return may be transmitted under clause 263 (2)(a); (k) the cases, the nature and value of assets, the limits and heads of expenditure and the outgoings, which are required to be prescribed under clause 263(2)(b); (l) the form of the report of audit or inventory valuation and the particulars which such report shall contain under clause 268(5); (m) remuneration of Chairperson and members of the Approving Panel under clause 274(21) and procedure and manner for constitution of, functioning and disposal of references by, the Approving Panel under clause 274(24); (n) the form and manner in which the information relating to payment of any sum may be furnished under clause 397(3)(d); (o) the authority to be prescribed for any of the purposes of the proposed legislation; (p) the procedure for giving effect to any agreement for the granting of relief in respect of double taxation or for the avoidance of double taxation entered into by the Central Government under the proposed legislation; (q) the procedure for granting of relief or deduction, of any income-tax paid in any country or specified territory outside India, under clause 159 or 160, against the income-tax payable under the proposed legislation; (r) the form and manner in which any application, claim, return or information may be made or furnished and the fees that may be levied in respect of any application or claim; (s) the manner in which any document required to be filed under the proposed legislation may be verified; (t) the procedure to be followed on applications for refunds; (u) the procedure for calculating interest payable by assessees or by the Government to assessees under the proposed legislation, including the rounding off of periods when a fraction of a month is involved, and specifying the circumstances under which and the extent to which petty amounts of interest payable by assessees may be ignored; (v) the regulation of any matter for which provision is made in clause 420; (w) the form and manner in which any appeal or cross-objection may be filed under the proposed legislation, the fee payable in respect thereof and the manner in which intimation referred to in clause 358 (3)(b) may be served; (x) the circumstances, conditions and the manner in which, the Joint Commissioner (Appeals) or the Commissioner (Appeals) may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the Assessing Officer; (y) the form in which the statement under clause 507 shall be delivered to the Assessing Officer; (z) the maintenance of a register of persons other than legal practitioners or accountants practising before income-tax authorities and for the constitution of and the procedure to be followed by the authority referred to in clause 515(5); (za) the issue of certificate verifying the payment of tax by assessees; and (zb) any other matter which is to be provided by rules under the proposed legislation. 8. Sub-clause (3) of clause 535 of the Bill seeks to provide that every removal of difficulty order made under the said clause shall be laid, as soon as may be, after it is made, before each House of Parliament. 9. The conditions specified in the Note to Table:2.C of Schedule II, inter alia, empowers the Board to issue guidelines with the prior approval of the Central Government for removing any difficulty arising in giving effect to the provisions of the said clause. The said clause further provides that the guidelines so issued shall be laid, as soon as may be, after it is made, before each House of Parliament. 10. The matters in respect of which rules may be made are matters of procedure and details and it is not practicable to provide for them in the Bill itself. The delegation of legislative powers is, therefore, of a normal character.