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TMI BlogPersonal Income-tax reforms with special focus on middle class - FAQX X X X Extracts X X X X X X X X Extracts X X X X ..... Sl.No. Total Income (Rs. In lacs) Rate of tax u/s 115BAC (1A) 1. 0- 4 0% 2. 4-8 5% 3. 8-12 10% 4. 12-16 15% 5. 16--20 20% 6. 20-24 25% 7. More than 24 Lacs 30% Q.4. What is the tax benefit for different category of taxpayers (0-24 lacs) Total Income Tax as per existing rates[as per Finance (No.2) Act, 2024] Tax as per proposed rates Benefit of Rate/Slab Rebate Benefit [with reference to (3)] Total Benefit[computed when compared to current slab rates] Tax Payable under new regime (1) (2) (3) (4)=(3)-(2) (5) (6)=(4)+(5) (7) 8 lac 30,000 20,000 10,000 20,000 30,000 0 9 lac 40,000 30,000 10,000 30,000 40,000 0 10 lac 50,000 40,000 10,000 40,000 50,000 0 11 lac 65,000 50,000 15,000 50,000 65,000 0 12 lac 80,000 60,000 20,000 60,000 80,000 0 13 lac 1,00,000 75,000 25,000 0 25,000 75,000 14 lac 1,20,000 90,000 30,000 0 30,000 90,000 15 lac 1,40,000 1,05,000 35,000 0 35,000 1,05,000 16 lac 1,70,000 1,20,000 50,000 0 50,000 1,20,000 17 lac 2,00,000 1,40,000 60,000 0 60,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit of income for nil tax payment was Rs 7 lac. By increasing this limit to Rs 12 lakh around one crore assessees who were earlier required to pay tax varying from Rs 20,000 to Rs 80,000 will be now paying nil tax. Q.11. Is the standard deduction on salary available in the new regime? Ans Yes, a standard deduction of Rs. 75,000 is available to a tax payer in the new regime. Therefore, a salaried tax payer will not be required to pay any tax where his income before standard deduction is less than or equal to Rs 12,75,000. Q.12. Whether standard deduction is available in old regime? Ans. Standard deduction of Rs. 50,000 is available in old regime. Q.13. How many tax payers will benefit from the new rates and slabs? Ans. Presently, for AY 2024-25, about 8.75 crore persons have filed their ITRs. All such assessees who were paying tax in the new tax regime will benefit from the change in rates and slabs. Q.14. What is the extra amount available to the taxpayers as a result of this change? Ans. Approximately Rs. 1 lakh crore will be made available in the hands of the taxpayers by virtue of changes in slab, rates and rebate. Q.15. How is the marginal relief available to indivi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by deducting the income exceeding Rs. 12, 10,000 (i.e. Rs.10,000) from total tax liability determined in this case (i.e. Rs. 61,500) as tabulated above. (v) Therefore, in the above case rebate by way of marginal relief is Rs. 51,500 (61,500/- 10,000/-= 51,500/-) is allowed. (vi) Tax payable is therefore Rs. 10,000 [Rs. 61,500-Rs.51,500] Q.18. What is the maximum amount of rebate available to any tax payer? Ans. The maximum rebate available is Rs 60,000 which is there for a tax payer having income of Rs 12 lacs on which tax is payable as per the new slabs. Q. 19. What is the total income till which marginal relief is admissible? Ans. The total income till which marginal relief is available is near about Rs. 12,75,000/-. Q.20. Whether special income having special rate such as capital gains, lottery etc. also be eligible for rebate? Ans. No rebate is not available on income from capital gains or lotteries or any other income on which special rate has been provided in the Act. It is available only on the tax payable as per slabs under section 115BAC. Q.21. What is the difference between rebate and marginal relief? Ans: Rebate is the deduction from tax which is available to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sactions which are not regarded as transfers for the purposes of capital gains as provided in section 45 Q.5. What tax incentives have been brought in for life insurance policy from IFSC Insurance offices? Ans. Clause (10D) of section 10 is proposed to be amended so as to provide that proceed received on life insurance policy, issued by insurance intermediary office located in IFSC, shall be exempted without any condition on premium amount (i.e. Rs. 2,50,000 for ULIPs and Rs. 5,00,000 for other policies). However, the premium payable for any of the year during the term of policy should not be more than 10 percent of the actual capital sum assured. Q.6. What exemptions are provided to aircraft leasing units in IFSC? Ans. Exemption on capital gains tax is provided to non-residents or unit of IFSC (being engaged in aircraft leasing) on transfer of equity shares of domestic companies (being units of IFSC) who are also engaged in aircraft leasing [Section 10(4H)]. Further, exemption is provided on dividend paid by a company (being a unit of IFSC) engaged in aircraft leasing, to another unit of IFSC who is also engaged in aircraft leasing. Q.7. What exemptions have been provided to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n context of safe harbour? Ans. A safe harbor is a regime wherein for an assessee that fulfils specific conditions as prescribed, the conduct or transactions of such an assessee may be accepted. In the proposed Bill, the condition for residency in respect of aggregate participation or investment in the eligible investment fund of a resident under clause (c) of section 9A has been relaxed. Q.13. What amendments have been carried out in the current Bill in section 9A of the Income-tax Act,1961? Ans. Condition at clause (c) of section 9A is being relaxed for all the investment funds whether or not its fund manager is located in IFSC, by determining the aggregate participation or investment in the fund as on the 1st day of April and the 1st day of October of the previous year. Further, all conditions other than (c) can be relaxed by the Central Government for investment fund whose fund manager located in IFSC commences operations before 31.03.2030. This date was earlier 31.03.2024 Q.14. What grace period is provided in case the proposed condition at (c) is not satisfied? Ans. In case the condition at clause (c) of section 9A is not satisfied on either of the said dates, a grace ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve instruments; or • over-the-counter derivatives; or (ii) distribution of income on offshore derivative instruments Q.2 What are the changes made by the Finance Bill 2025 to grant exemption under section 10(4E)? Ans. The exemption for transactions in derivatives was limited to the transactions made by non-residents with Offshore Banking Units. By the Finance Bill 2025, these benefits are now also being extended to such transactions, made with a Foreign Portfolio Investor (FPIs) being a unit in the IFSC. Q.3 Whether the exemption u/s 10(4E) of IT Act, 1961 is available to the non-residents holding such contract or instrument or derivative or the FPI (unit of an IFSC)? Ans. The exemption u/s 10(4E) is available to the non-resident and not the FPI Q.4 What is the FPI in respect of which a non-resident can claim benefits under section 10(4E) of the Income Tax Act, 1961? Ans. A non-resident can claim benefits under section 10(4E) in respect of transactions with an FPI which that is a person, registered in accordance with the provisions of the SEBI (FPI) Regulations, 2019 and is also a unit in the IFSC Q.5 Can transactions with all FPIs be eligible for benefit under the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable premium exceeded 10 percent of the sum assured, the sum received on redemption was not being charged to tax as 'capital gain' under sub-section (1B) of section 45. Even though it was not exempt, there was ambiguity regarding the head of chargeability. The current amendment has now made the tax treatment given to all ULIP policies consistent. Thus, if exemption under Section 10(10D) does not apply, the sum received under both ULIP and other insurance policy shall be chargeable to tax under the head 'capital gains' or 'income from other sources', respectively. FAQ:6- Rationalization of transfer pricing provisions for carrying out multi-year arm's length price determination Q.1. What are transfer pricing provisions? Ans. Transfer pricing provisions enable computation of income arising from an international transaction or a specified domestic transaction with regard to an Arm's Length Price (ALP). Q.2. How is income computed while reference is made for determination of arm's length price? Ans. The determination of ALP in transfer pricing provisions inter alia proceeds in the following manner - • the Assessing Officer (AO) may, refer the computation of the ALP in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the transaction for which valid option is exercised. Even if any reference is made in respect of such transaction, it shall have the effect as if no reference is made for such transaction provided the TPO has passed order determining the option as valid in respect of such transactions. Q.8. Do the provisions of exercising option mentioned above and consequent proceedings, apply to search cases? Ans. No. Q.9. How will the income will be recomputed once the TPO has examined and determined the ALP in relation to such similar transaction for such consecutive previous years, in the order? Ans. The AO shall recompute the total income of the assessee for such consecutive previous years as per the provisions of sub-section (21) of section 155. Q.10. How will the AO recompute the total income of the 2 consecutive previous years under the provisions of section 155(21) of the Income Act, 1961? Ans. The AO shall recompute the total income of the assessee for such consecutive previous years, by amending the order of assessment or any intimation,- i. in conformity with the ALP so determined by the TPO under sub-section (4A) of section 92CA in respect of such transaction (being a simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggregate, i.e upto the end of the previous year, to the trust. The threshold limit for considering a contribution as 'substantial contribution' to the trust or institution has been changed from total contribution exceeding fifty thousand rupees up to the end of the relevant previous year to one lakh rupees during the relevant previous year, or exceeding ten lakh rupees in aggregate up to the end of the relevant previous year. The amendment, as above, shall be applicable to person other than author, founder, trustee, member or manager of the trust. Further, amendment has been made so as to not consider 'relative' and 'concern in which such person has substantial interest' as specified person under section 13(3) of the Income- tax Act, 1961. Q.7. Whether the relaxation provided to specified person also covers author, founder of trust, trustees, member or manager of the trusts? Ans. It is clarified the relaxation shall not apply to author, founder of trust, trustees, member or manager of the trusts FAQ:8- Extension of date of making investment by Sovereign Wealth Funds, Pension Funds and others: Q.1. What are the current provisions relating to specified persons like Soverei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing services or technology to a resident company which is engaged in electronics manufacturing facility including semi-conductor fabrication in India? Ans. A presumptive taxation regime for such non-residents has been provided. Q.2. What was the scheme of taxation in respect of such activity/such persons prior to Finance Bill, 2025? Ans. Prior to the proposed amendment, a non-resident or a foreign company was liable to tax as business income on the profits from this activity at the applicable rates. There was no separate scheme for presumptive taxation for such activity/person. Q.3. What is presumptive taxation regime? Ans. Presumptive taxation is a simplified method of calculating taxes for eligible taxpayers. The main motive is to bring tax certainty to certain specified businesses. This reduces compliance costs and promotes ease of doing business. The profits of the business are deemed to be certain percentage of sales/turnover or receipts. Q.4. What are the main provisions of section 44BBD introduced in Finance Bill 2025? Ans. As per new section 44BBD, 25% of the aggregate amount received/ receivable by, or paid/ payable to, the non-resident, on account of prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axed as capital gains. Consequently, the income shall be a pass-through to be taxed in the hands of unit holder and not the investment fund. The income will be treated as capital gains. FAQ:11- Rationalisation in taxation of business trusts Q.1. What are the provisions relating to Business Trusts? Ans. Business trusts (Infrastructure Investment Trusts or Real Estate Investment Trust) have been given a pass-through status in respect of interest income, dividend income and rental income from a special purpose vehicle i.e. exempted in the hands of business trusts and taxed in the hand of investor (unit holder). The income other than the above income of a business trust, is charged to tax in the hands of business trust at the maximum marginal rate. The income under the head Capital Gain is therefore not a pass-through income but is chargeable in the hands of the business trust itself. Such income is however presently charged to tax at rate under sections 111A and 112 of the Income Tax Act, 1961. Q.2. What changes have been brought in provision relating to business trust? Ans. The reference of income under the head 'capital gains', of the nature, chargeable under section 112A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a perquisite. It is clarified that the proposed amendment [refer (b) in Q.1] relates to travel outside India on medical treatment of an employee or his family member. FAQ:13- Harmonization of Significant Economic Presence applicability with business connection Q.1. What provisions are contained in section 9 of the Income-tax Act, 1961? Ans. Section 9 specifies the incomes that are deemed to accrue or arise in India. It specifically applies to incomes that are deemed to accrue or arise to foreign entities or non-residents in India. Q.2. How is a business income considered to have deemed to accrue or arise in India? Ans. In the case of a business, income through or from any business connection in India or from significant economic presence in India (which is considered as business connection) is considered as income deemed to be accrued or arising in India. Q.3. What amendment has been carried out section 9 of the Income-tax Act, 1961? Ans. An amendment has been carried out to provide that the transactions or activities of a non-resident in India which are confined to the purchase of goods in India for the purpose of export shall not constitute significant economic prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of time limit u/s 80-IAC for startups: Q1. What is the benefit provided u/s 80-IAC of IT Act to eligible start-ups? Ans. S. 80-IAC provides for a deduction of 100% of business profits to an eligible start-up. The deduction is allowed for any 3 consecutive assessment years out of 10 years. Q.2 What are the conditions for benefit u/s 80-IAC, prior to Finance Bill 2025? Ans. Conditions for benefit u/s 80-IAC are- Total turnover of business for the year in which deduction is being allowed does not exceed Rs.100 Cr. The start-up is holding a certificate of eligible business from the Inter- Ministerial Board of Certification. It is incorporated on or after the 1.4.2016 but before 1.4.2025. Q.3 What are the changes in s. 80-IAC by Finance Bill 2025? Ans. The benefit u/s 80-IAC has been extended for another period of 5 years. Thus, the benefit will therefore now be available to eligible start-ups incorporated before 1.4.2030. FAQ 16: Deduction u/s 80CCD for contributions made to the NPS Vatsalya Q1. What is NPS Vatsalya Scheme? Ans. This Scheme was notified by the Pension Fund Regulatory and Development Authority and allows parents and guardians to maintain NPS accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.10.2024? Ans. Section 80CCA has been amended to allow tax exemption in respect of amounts withdrawn by individual on or after 29.8.2024. The exemption has been provided only in respect of NSS deposits for which deduction u/s 80CCA was allowed earlier. This shall enable the NSS depositor to withdraw their funds lying in the NSS without any tax liability. Q.4 When is the benefit available to NSS withdrawals by Finance Bill, 2025? Ans. The benefit will be available to individuals who withdraw funds from their NSS accounts on or after 29.8.2024. FAQ no. 18 Rationalization of rates and threshold of tax deducted at source (TDS) and tax collected at source (TCS) Q.1 What are the main changes in Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) proposed by the Budget 2025? Ans. (i) To improve ease of doing business and better compliance by taxpayers, certain rates of TDS and TCS has been rationalized. (ii) Threshold limit for applicability of the TDS and TCS provisions has also been increased. Q.2 What are the changes proposed in Finance Bill, 2025 with regard to rates of TDS and TCS? Ans. Following changes are proposed in the rates of TDS and TCS: S.No. Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 206C(1) of the Act? [TCS on sale of specified goods] Ans. Section 206C(1) mandates the seller to collect tax at source (TCS) from buyer, at specified rates, on sale of specified goods such as alcoholic liquor, timber, tendu leave, any other forest produce etc. Q.2 What are the changes brought in Finance Bill, 2025 in context of section 206C(1) of the Act? Ans. Three major changes are brought in section 206C(1) of the Act: (i) "forest produce" has been defined. (ii) Scope of forest produce eligible for TCS has been clarified: Earlier, sale of forest produce was liable for TCS, now sale of "any other forest produce under a forest lease" will be liable for TCS. (iii) Rate of TCS on sale of timber or any other forest produce (not being tendu leaves) obtained under a forest lease and in case of timber, obtained by any other mode, has been reduced from 2.5% to 2%. Q.3 How has the term "forest produce" has been defined in the Act ? Ans. Forest produce has been assigned same meaning as provided any State Act for the time being in force, or in the Indian Forest Act, 1927. Q.4 What are the other changes made in relation to TCS on "forest produce"? Ans. Now onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall collect TCS at the rate of 0.1%. Q.3 What changes are proposed in section 206C(1H) in the Finance Bill, 2025? Ans. TDS is also applicable u/s 194Q of the Act at the rate of 0.1% of sale consideration at the time of sale of goods. The existing TCS provisions provide that TCS is not to be collected if TDS is deducted on the same transaction. However, at times the collector (seller) is not aware of the fact whether TDS has been done by the buyer on such transaction. This results in both TDS and TCS being applied on the same transaction. It is therefore proposed that provisions of TCS on sale of goods will not be applicable from 01.04.2025 onwards. Q.4 How will the amendment benefit the taxpayers? Ans. Removal of TCS on sale of goods would provide certainty to the buyer as well as seller and reduce compliance burden on the seller (collector). This will also result in avoidable blockage of liquidity. Q.5 From which date taxpayer will not be required to collect TCS under this section? Ans. From 01.04.2025, the taxpayer is not required to collect TCS under this section. FAQ no. 22 Extension of Tonnage Tax Scheme to Inland vessels Q.1 What is tonnage tax scheme? Ans. Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnish information of crypto asset. Q.4 What information will be required to be furnished? Ans. Information in respect of transaction in crypto asset as may be prescribed under section 285BAA will be required to be furnished by the Reporting Entity. Q.5 Who is the Reporting Entity? Ans. Reporting Entity shall be the entity as prescribed in Income-tax Rules in this regard. Q.6 To whom information is to be furnished by the Reporting Entity? Ans. The information is to be furnished to the Income-tax authority as prescribed in Income- tax Rules in this regard. Q.7 What type of information is proposed to be furnished? Ans. Information in respect of transaction of crypto-asset for such period as prescribed in Income-tax Rules in this regard is to be furnished. Q.8 Whether any rules, forms etc. are proposed to be prescribed? Ans. Yes, rules and forms will be prescribed to furnish prescribed information by the Reporting Entity. Q.9 Why is it being made obligatory to furnish information of crypto asset? Ans. India has been included in the list of 52 "Relevant" jurisdictions for the purpose of Crypto- Asset Reporting Framework (CARF). CARF provides for the automatic ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt stay etc. for calculating time limit to pass an order Q.1 What is section 206C(7A) of the Act? Ans. This section provides time limit to pass an order u/s 206C(6A) deeming a person to be an assessee in default for failure to collect tax. Q.2 What is the time limit provided u/s 206C(7A) of the Act? Ans. No order u/s 206C(6A) of the Act can be passed after expiry of (i) six years from the end of the financial year in which tax was collectible; or (ii) two years from the end of the financial year in which correction statement is delivered u/s 206C(3B), whichever is later. Q.3 What changes are proposed in the Finance Bill, 2025 in the section 206(7A)? Ans. While computing the time limit u/s 206C(7A) of the Act, it is proposed to exclude time period for which proceedings were stayed by an order of any court, etc. Q.4 From when these changes will take place? Ans. These changes will be effective from 01.04.2025. FAQ no. 26 -- Increasing time limit available to pass order under section 115VP Q.1 What is section 115VP of the Act? Ans. A qualifying shipping company may opt for tonnage tax scheme by making an application under this section to the jurisdictional Joint Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax that is to be paid for filing updated return after expiry of 24 months from the end of relevant assessment year upto 36 months from the end of relevant assessment year as per the amendment brought in section 140B (3) of the Income-tax Act,1961 in Finance Bill 2025? Ans. 60% of aggregate of tax and interest payable on additional income disclosed in the updated ITR. Q.5 What is the additional income-tax that is to be paid for filing updated return after expiry of 36 months from the end of relevant assessment year upto 48 months from the end of relevant assessment year as per the amendment brought in section 140B(3) of the Income-tax Act,1961 in Finance Bill 2025? Ans. 70% of aggregate of tax and interest payable on additional income disclosed in the updated ITR. Q.6 What is the rationale for updated return upto 48 months as per the amendment brought in section 139(8A) of the Income-tax Act,1961 in Finance Bill 2025? Ans. This is in line with the philosophy of 'Trust First'. The facility of updated return upto 48 months will enhance voluntary compliance. Q.7 Can a taxpayer file more than one updated ITR? Ans. No. The taxpayer cannot file more than one updated ITR for on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 139(1),139(4) or 139(5) of the Act. • Results in refund or increases the refund due on the basis of return furnished under section 139(1),139(4) or 139(5) of the Act. • If search has been initiated under section 132 of the Act etc. 1st, 2nd and 3rd proviso of section 139(8A) of the Act provides restriction on filing updated return in detail. Q.12 Are there any additional requirements to file updated return after expiry of 24 months from the end of relevant assessment year upto 36 months from the end of relevant assessment year as per the amendment brought in section 140B (3) of the Income-tax Act,1961 in Finance Bill 2025? Ans. No, there are no additional requirements. However, a taxpayer has to pay additional income-tax amounting to 60% of aggregate of tax and interest payable on additional income disclosed in the updated ITR if he wants to file update return after expiry of 24 months from the end of relevant assessment year upto 36 months from the end of relevant assessment year. Q.13 In case of non-filer, what shall be taken as additional income? Ans. Any income over and above the maximum amount which is not chargeable to income-tax shall be taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the option of the taxpayer. Therefore, the taxpayer can choose two out of the three houses in this example, for determining the annual value of such properties as per section 23(2) of the Act. Q5. For how many self-occupied properties, annual value can be taken as Nil? Ans. For two of such house properties which the owner can specify. Q6. When will the changed provisions relating to self-occupied property come in force? Ans. The new provisions will apply from previous year 2024-25 i.e. assessment year 2025-26 onwards. FAQ 29: Exemption from prosecution for delayed payment of TCS Q1. What is section 276BB of the Income-tax Act, 1961? Ans. Section 276BB of the Income-tax Act, 1961 provides for prosecution in case of failure to pay the tax collected at source to the credit of Central Government. Q2. What amendment has been made in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025? Ans. Section 276BB of the Income-tax Act, 1961 has been amended to provide that prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government at any time on or before the time prescribed for filing the statement under proviso to 206C (3) in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DA, 271DB and 271E of the Act in Finance Bill 2025? Ans. The penalties under these sections shall be levied by the Assessing Officer in place of Joint Commissioner. Q3. After Finance Bill 2025, can penalties under sections 271C, 271CA, 271D, 271DA, 271DB and 271E of the Act be imposed without approval of the Joint Commissioner? Ans. No, AO shall take prior approval of Joint Commissioner for the passing of penalty order, where penalty amount exceeds the limit specified in sub-section (2) of section 274 of the Act. Presently the limit for penalty amount in section 274(2) of the Act is Rs 10,000/- for Income-tax Officer and Rs 20,000/- for the Assistant or Deputy Commissioner. FAQ 32 : Extending the processing period of Application seeking immunity from penalty and prosecution Q1. What is section 270AA of the Income-tax Act, 1961? Ans. Section 270AA of the Income-tax Act, 1961 relates to immunity from imposition of penalty or prosecution. Q2. When is the assessee required to apply for immunity under section 270AA of the Income-tax Act, 1961? Ans. As per existing provisions, assessee should apply for immunity within one month from the end of the month in which the assessment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by an order or injunction of any court". Q.2 What is the amendment regarding the time limit for completion of assessment, reassessment and recomputation in section 153 of Income-tax Act, 1961 in Finance Bill 2025? Ans. As per Finance Bill 2025 amendment, as per clause (ii) of Explanation 1 of section 153 of the Income Tax Act,1961 following period shall be excluded in computation of time limit for completion of assessment, reassessment and recomputation: - "the period commencing on the date on which stay on the assessment proceeding was granted by an order of any court and ending on the date on which certified copy of the order vacating the stay is received by the jurisdictional Principal Commissioner or Commissioner." Q3. What sections regarding the vacation of stay of Court has been amended in Finance Bill 2025? Ans. Sections 144BA,153,153B,158BE,158BFA,263,264 and Rule 68B of Schedule II of the Income Tax Act,1961 has been amended to clarify the commencement and end date for exclusion of time period of limitation of respective sections. FAQ 35 : Time limit for retention of seized books of account or other documents rationalized Q1. Why is retention of seized books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under Chapter XIV-B prior to Finance Bill 2025? Ans. The time-limit for completion of block assessment was twelve months from end of the month in which the last of the authorisations for search or requisition has been executed. Q3. What is the time-limit for completing assessment under Chapter XIV-B in Finance Bill 2025? Ans. The time-limit for completion of block assessment is twelve months from end of the quarter in which the last of the authorisations for search or requisition has been executed. Q4. What is Undisclosed income under Chapter XIV-B of the Income-tax Act,1961? Ans. Undisclosed income in respect of the block period includes: - (i) any money, bullion, jewellery, virtual digital asset or other valuable article or thing or any expenditure or any income based on any entry in the books of account or other documents or transactions, where such money, bullion, jewellery, virtual digital asset, valuable article, thing, entry in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act; or (ii) any expense, exemption, deduction or allowance clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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