Income Tax Act as amended by Finance Act, 2025

CHAPTER I

PRELIMINARY
1. Short title, extent and commencement. 1
2. Definitions. 1
3. Previous year defined. 42

CHAPTER II

BASIS OF CHARGE
4. Charge of income-tax. 43
5. Scope of total income. 44
5A. Apportionment of income between spouses governed by
Portuguese Civil Code.
45
6. Residence in India. 46
7. Income deemed to be received. 48
8. Dividend income. 49
9. Income deemed to accrue or arise in India. 49
9A. Certain activities not to constitute business connection in India. 63
9B. Income on receipt of capital asset or stock in trade by specific
person from specified entity.
66

CHAPTER III

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
10. Incomes not included in total income. 67

CHAPTER IV

COMPUTATION OF TOTAL INCOME
Heads of income
10A. Special provision in respect of newly established undertakings in
free trade zone, etc.
159
10AA. Special provisions in respect of newly established Units in
Special Economic Zones.
165
10B. Special provisions in respect of newly established hundred per
cent export-oriented undertakings.
170
10BA. Special provisions in respect of export of certain articles or
things.
175
Contents Income-tax Act, 1961
iv
10BB. Meaning of computer programmes in certain cases. 176
10C. Special provision in respect of certain industrial undertakings in
North-Eastern Region.
176
11. Income from property held for charitable or religious purposes. 178
12. Income of trusts or institutions from contributions. 191
12A. Conditions for applicability of sections 11 and 12 192
12AA. Procedure for registration. 196
12AB. Procedure for fresh registration. 198
12AC. Merger of charitable trusts or institutions in certain cases. 202
13. Section 11 not to apply in certain cases. 203
13A. Special provision relating to income of political parties. 211
13B. Special provisions relating to voluntary contributions received
by electoral trust.
212

CHAPTER IV

COMPUTATION OF TOTAL INCOME
Heads of income
14. Heads of income. 212
14A. Expenditure incurred in relation to income not includible in total
income.
212
A.—Salaries
15. Salaries. 214
16. Deductions from salaries. 215
17. “Salary”, “perquisite” and “profits in lieu of salary” defined. 216
C.—Income from house property
22. Income from house property. 224
23. Annual value how determined. 225
24. Deductions from income from house property. 227
25. Amounts not deductible from income from house property. 228
25A. Special provision for arrears of rent and unrealised rent received
subsequently.
229
26. Property owned by co-owners. 229
27. “Owner of house property”, “annual charge”, etc., defined. 230
D.—Profits and Gains of Business or Profession
28. Profits and gains of business or profession. 230
29. Income from profits and gains of business or profession, how
computed.
236
30. Rent, rates, taxes, repairs and insurance for buildings. 236
31. Repairs and insurance of machinery, plant and furniture. 236
32. Depreciation. 237
Income-tax Act, 1961 Contents
v
32A. Investment allowance. 246
32AB. Investment deposit account. 253
32AC. Investment in new plant or machinery. 258
32AD. Investment in new plant or machinery in notified backward
areas in certain States.
259
33. Development rebate. 260
33A. Development allowance. 264
33AB. Tea development account , coffee development account and
rubber development account
267
33ABA. Site Restoration Fund. 271
33AC. Reserves for shipping business. 274
33B. Rehabilitation allowance. 276
34. Conditions for depreciation allowance and development rebate. 276
34A. Restriction on unabsorbed depreciation and unabsorbed
investment allowance for limited period in case of certain
domestic companies.
277
35. Expenditure on scientific research. 278
35A. Expenditure on acquisition of patent rights or copyrights. 288
35AB. Expenditure on know-how. 289
35ABA. Expenditure for obtaining right to use spectrum for
telecommunication services.
290
35ABB. Expenditure for obtaining licence to operate telecommunication
services.
291
35AC. Expenditure on eligible projects or schemes. 292
35AD. Deduction in respect of expenditure on specified business. 295
35B. [***] 301
35C. [***] 301
35CC. [***] 301
35CCA. Expenditure by way of payment to associations and institutions
for carrying out rural development programmes.
301
35CCB. Expenditure by way of payment to associations and institutions
for carrying out programmes of conservation of natural
resources.
303
35CCC. Expenditure on agricultural extension project. 304
35CCD. Expenditure on skill development project. 304
35D. Amortisation of certain preliminary expenses. 304
35DD. Amortisation of expenditure in case of amalgamation or
demerger.
308
35DDA. Amortisation of expenditure incurred under voluntary
retirement scheme.
308
Contents Income-tax Act, 1961
vi
35E. Deduction for expenditure on prospecting, etc., for certain
minerals.
309
36. Other deductions. 311
37. General. 325
38. Building, etc., partly used for business, etc., or not exclusively so
used.
333
39. [***] 333
40. Amounts not deductible. 333
40A. Expenses or payments not deductible in certain circumstances. 341
41. Profits chargeable to tax. 346
42. Special provision for deductions in the case of business for
prospecting, etc., for mineral oil.
350
43. Definitions of certain terms relevant to income from profits and
gains of business or profession.
352
43A. Special provisions consequential to changes in rate of exchange
of currency.
363
43AA. Taxation of foreign exchange fluctuation. 365
43B. Certain deductions to be only on actual payment. 366
43C. Special provision for computation of cost of acquisition of certain
assets.
371
43CA. Special provision for full value of consideration for transfer of
assets other than capital assets in certain cases.
372
43CB. Computation of income from construction and service contracts. 373
43D. Special provision in case of income of public financial
institutions [***], etc.
373
44. Insurance business. 375
44A. Special provision for deduction in the case of trade, professional
or similar association.
375
44AA. Maintenance of accounts by certain persons carrying on
profession or business.
376
44AB. Audit of accounts of certain persons carrying on business or
profession.
378
44AC. [***] 380
44AD. Special provision for computing profits and gains of business on
presumptive basis.
380
44ADA. Special provision for computing profits and gains of profession
on presumptive basis.
383
44AE. Special provision for computing profits and gains of business of
plying, hiring or leasing goods carriages.
384
44AF. Special provisions for computing profits and gains of retail
business.
386
Income-tax Act, 1961 Contents
vii
44B. Special provision for computing profits and gains of shipping
business other than cruise shipping in case of non-residents
386
44BB. Special provision for computing profits and gains in connection
with the business of exploration, etc., of mineral oils.
387
44BBA. Special provision for computing profits and gains of the business
of operation of aircraft in the case of non-residents.
388
44BBB. Special provision for computing profits and gains of foreign
companies engaged in the business of civil construction, etc., in
certain turnkey power projects.
389
44BBC. Special provision for computing profits and gains of business of
operation of cruise ships in case of non-residents.
389
44BBD. Special provision for computing profits and gains of nonresidents engaged in business of providing services or
technology for setting up an electronics manufacturing facility or
in connection with manufacturing or producing electronic goods,
article or thing in India.
390
44C. Deduction of head office expenditure in the case of nonresidents.
390
44D. Special provisions for computing income by way of royalties,
etc., in the case of foreign companies.
392
44DA. Special provision for computing income by way of royalties, etc.,
in case of non-residents.
393
44DB. Special provision for computing deductions in the case of
business reorganisation of co-operative banks.
394
E.—Capital gains
45. Capital gains. 397
46. Capital gains on distribution of assets by companies in
liquidation.
403
46A. Capital gains on purchase by company of its own shares or other
specified securities.
404
47. Transactions not regarded as transfer. 404
47A. Withdrawal of exemption in certain cases. 416
48. Mode of computation. 417
49. Cost with reference to certain modes of acquisition. 420
50. Special provision for computation of capital gains in case of
depreciable assets.
425
50A. Special provision for cost of acquisition in case of depreciable
asset.
426
50AA. Special provision for computation of capital gains in case of
Market Linked Debenture.
426
50B. Special provision for computation of capital gains in case of
slump sale

50C. Special provision for full value of consideration in certain cases. 429
50CA. Special provision for full value of consideration for transfer of
share other than quoted share.
431
50D. Fair market value deemed to be full value of consideration in
certain cases.
431
51. Advance money received. 432
52. [***] 432
53. [***] 432
54. Profit on sale of property used for residence. 433
54A. [***] 437
54B. Capital gain on transfer of land used for agricultural purposes
not to be charged in certain cases.
437
54C. [***] 438
54D. Capital gain on compulsory acquisition of lands and buildings
not to be charged in certain cases.
438
54E. Capital gain on transfer of capital assets not to be charged in
certain cases.
440
CHAPTER V
INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S TOTAL INCOME
54EA. Capital gain on transfer of long-term capital assets not to be
charged in the case of investment in [specified securities].
444
54EB. Capital gain on transfer of long-term capital assets not to be
charged in certain cases.
446
54EC. Capital gain not to be charged on investment in certain bonds. 447
54ED. Capital gain on transfer of certain listed securities or unit, not to
be charged in certain cases.
450
54EE. Capital gain not to be charged on investment in units of a
specified fund.
451
54F. Capital gain on transfer of certain capital assets not to be charged
in case of investment in residential house.
452
54G. Exemption of capital gains on transfer of assets in cases of
shifting of industrial undertaking from urban area.
456
54GA. Exemption of capital gains on transfer of assets in cases of
shifting of industrial undertaking from urban area to any Special
Economic Zone.
457
54GB. Capital gain on transfer of residential property not to be charged
in certain cases.
459
54H. Extension of time for acquiring new asset or depositing or
investing amount of capital gain.
461
55. Meaning of “adjusted”, “cost of improvement” and “cost of
acquisition”.
462
Income-tax Act, 1961 Contents
ix
55A. Reference to Valuation Officer. 467
F.—Income from other sources
56. Income from other sources. 468
57. Deductions. 479
58. Amounts not deductible. 481
59. Profits chargeable to tax. 482
CHAPTER V
INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S TOTAL INCOME
60. Transfer of income where there is no transfer of assets. 482
61. Revocable transfer of assets. 483
62. Transfer irrevocable for a specified period. 483
63. “Transfer” and “revocable transfer” defined. 483
64. Income of individual to include income of spouse, minor child,
etc.
484
65. Liability of person in respect of income included in the income of
another person.
487
CHAPTER VI
AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSS
Aggregation of income
66. Total income. 488
67. [***] 488
67A. Method of computing a member’s share in the income of
association of persons or body of individuals.
488
68. Cash Credits. 489
69. Unexplained investments. 492
69A. Unexplained money, etc. 493
69B. Amount of investments, etc., not fully disclosed in books of
account.
494
69C. Unexplained expenditure, etc. 495
69D. Amount borrowed or repaid on hundi. 496
Set off, or carry forward and set off
70. Set off of loss from one source against income from another
source under the same head of income.
496
71. Set off of loss from one head against income from another. 496
71A. Transitional provisions for set off of loss under the head “Income
from house property”.
497
71B. Carry forward and set off of loss from house property. 497
72. Carry forward and set off of business losses. 498
72A. Provisions relating to carry forward and set off of accumulated
loss and unabsorbed depreciation allowance in amalgamation or
demerger, etc.
499
Contents Income-tax Act, 1961
x
72AA. Carry forward and set off of accumulated loss and unabsorbed
depreciation allowance in scheme of amalgamation in certain
cases.
505
72AB. Provisions relating to carry forward and set off of accumulated
loss and unabsorbed depreciation allowance in business
reorganisation of co-operative banks.
507
73. Losses in speculation business. 509
73A. Carry forward and set off of losses by specified business. 510
74. Losses under the head “Capital gains”. 510
74A. Losses from certain specified sources falling under the head
“Income from other sources”.
510
75. Losses of firms. 511
78. Carry forward and set off of losses in case of change in
constitution of firm or on succession.
512
79. Carry forward and set off of losses in case of certain companies. 512
CHAPTER VI-A
DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
79A. No set off of losses consequent to search, requisition and survey. 514
80. Submission of return for losses. 515
CHAPTER VI-A
DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
A.—General
80A. Deductions to be made in computing total income. 515
80AA. [***] 517
80AB. Deductions to be made with reference to the income included in
the gross total income.
517
80AC. Deduction not to be allowed unless return furnished. 517
80B. Definitions. 518
B.—Deduction in respect of certain payments
80C. Deduction in respect of life insurance premia, deferred annuity,
contributions to provident fund, subscription to certain equity
shares or debentures, etc.
518
80CC. [***] 525
80CCA. Deduction in respect of deposits under National Savings Scheme
or payment to a deferred annuity plan.
526
80CCB. Deduction in respect of investment made under Equity Linked
Savings Scheme.
527
80CCC. Deduction in respect of contribution to certain pension funds. 528
80CCD. Deduction in respect of contribution to pension scheme of
Central Government.
529
Income-tax Act, 1961 Contents
xi
80CCE. Limit on deductions under sections 80C, 80CCC and 80CCD. 531
80CCF. Deduction in respect of subscription to long-term infrastructure
bonds.
531
80CCG. Deduction in respect of investment made under an equity
savings scheme.
531
80CCH. Deduction in respect of contribution to Agnipath Scheme. 532
80D Deduction in respect of health insurance premia. 533
80DD. Deduction in respect of maintenance including medical
treatment of a dependant who is a person with disability.
536
80DDB. Deduction in respect of medical treatment, etc. 539
80E. Deduction in respect of interest on loan taken for higher
education.
541
80EE. Deduction in respect of interest on loan taken for residential
house property.
542
80EEA. Deduction in respect of interest on loan taken for certain house
property.
544
80EEB. Deduction in respect of purchase of electric vehicle. 544
80FF. [***] 545
80G. Deduction in respect of donations to certain funds, charitable
institutions, etc.
545
80GG. Deductions in respect of rents paid. 557
80GGA. Deduction in respect of certain donations for scientific research
or rural development.
557
80GGB. Deduction in respect of contributions given by companies to
political parties.
560
80GGC. Deduction in respect of contributions given by any person to
political parties.
560
C.—Deductions in respect of certain incomes
80H. [***] 561
80HH. Deduction in respect of profits and gains from newly established
industrial undertakings or hotel business in backward areas.
561
80HHA. Deduction in respect of profits and gains from newly established
small-scale industrial undertakings in certain areas.
563
80HHB. Deduction in respect of profits and gains from projects outside
India.
565
80HHBA. Deduction in respect of profits and gains from housing projects
in certain cases.
567
80HHC. Deduction in respect of profits retained for export business. 569
80HHD. Deduction in respect of earnings in convertible foreign exchange. 575
80HHE. Deduction in respect of profits from export of computer
software, etc.
579
Contents Income-tax Act, 1961
xii
80HHF. Deduction in respect of profits and gains from export or transfer
of film software, etc.
582
80-I. Deduction in respect of profits and gains from industrial
undertakings after a certain date, etc.
585
80-IA. Deductions in respect of profits and gains from industrial
undertakings or enterprises engaged in infrastructure
development, etc.
589
80-IAB. Deductions in respect of profits and gains by an undertaking or
enterprise engaged in development of Special Economic Zone.
598
80-IAC. Special provision in respect of specified business. 598
80-IB. Deduction in respect of profits and gains from certain industrial
undertakings other than infrastructure development
undertakings.
600
80-IBA. Deductions in respect of profits and gains from housing projects. 614
80-IC. Special provisions in respect of certain undertakings or
enterprises in certain special category States.
617
80-ID. Deduction in respect of profits and gains from business of hotels
and convention centres in specified area.
620
80-IE. Special provisions in respect of certain undertakings in NorthEastern States.
623
CHAPTER VI-B
RESTRICTION ON CERTAIN DEDUCTIONS IN THE CASE OF COMPANIES
80J. [***] 624
80JJ. [***] 624
80JJA. [***] 624
80JJA. Deduction in respect of profits and gains from business of
collecting and processing of bio-degradable waste.
624
80JJAA. Deduction in respect of employment of new employees. 625
80K. [***] 627
80L. [***] 627
80LA. Deduction in respect of certain incomes of Offshore Banking
Units and International Financial Services Centre.
627
80M. Deduction in respect of certain inter-corporate dividends. 630
80MM. [***] 630
80N. [***] 630
80-O. Deduction in respect of royalties, etc., from certain foreign
enterprises.
630
80P. Deduction in respect of income of co-operative societies. 632
80PA. Deduction in respect of certain income of Producer Companies. 635
80Q. Deduction in respect of profits and gains from the business of
publication of books.
637
Income-tax Act, 1961 Contents
xiii
80QQ. [***] 638
80QQA. Deduction in respect of professional income of authors of text
books in Indian languages.
638
80QQB. Deduction in respect of royalty income, etc., of authors of certain
books other than text-books.
639
80R. Deduction in respect of remuneration from certain foreign
sources in the cases of professors, teachers, etc.
640
80RR. Deduction in respect of professional income from foreign sources
in certain cases.
641
80RRA. Deduction in respect of remuneration received for services
rendered outside India.
642
80RRB. Deduction in respect of royalty on patents. 643
80S. [***] 645
80T. [***] 645
80TT. [***] 645
CA.— Deductions in respect of other incomes
80TTA. Deduction in respect of interest on deposits in savings account. 645
80TTB. Deduction in respect of interest on deposits in case of senior
citizens.
646
D.—Other deductions
80U. Deduction in case of a person with disability. 646
80V. [***] 648
80VV. [***] 648
CHAPTER VI-B
RESTRICTION ON CERTAIN DEDUCTIONS IN THE CASE OF COMPANIES
80VVA. [***] 648
CHAPTER VII
INCOMES FORMING PART OF TOTAL INCOME ON WHICH NO INCOME TAX IS
PAYABLE
81 to 85C. [***] 648
86. Share of member of an association of persons or body of
individuals in the income of the association or body.
648
86A. [***] 649
CHAPTER VIII
REBATES AND RELIEFS
A.—Rebate of income-tax
87. Rebate to be allowed in computing income-tax. 649
87A. Rebate of income-tax in case of certain individuals. 649
88. [***] 650
88A. [***] 656
Contents Income-tax Act, 1961
xiv
88B. [***] 656
88C. [***] 656
88D. [***] 657
88E. Rebate in respect of securities transaction tax. 657
B.—Relief for income-tax
89. Relief when salary, etc., is paid in arrears or in advance. 657
89A. Relief from taxation in income from retirement benefit account
maintained in a notified country.
658
CHAPTER IX
DOUBLE TAXATION RELIEF
90. Agreement with foreign countries or specified territories. 658
90A. Adoption by Central Government of agreements between
specified associations for double taxation relief.
661
91. Countries with which no agreement exists. 663
CHAPTER X
SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX
92. Computation of income from international transaction having
regard to arm’s length price.
665
92A. Meaning of associated enterprise. 666
92B. Meaning of international transaction. 667
92BA. Meaning of specified domestic transaction. 669
92C. Computation of arm’s length price. 669
92CA. Reference to Transfer Pricing Officer. 672
92CB. Power of Board to make safe harbour rules. 676
92CC. Advance pricing agreement. 677
92CD. Effect to advance pricing agreement. 678
92CE. Secondary adjustment in certain cases. 679
92D. Maintenance, keeping and furnishing of information and
document by certain persons.
681
92E. Report from an accountant to be furnished by persons entering
into international transaction or specified domestic transaction
682
92F. Definitions of certain terms relevant to computation of arm’s
length price, etc.
682
93. Avoidance of income-tax by transactions resulting in transfer of
income to non-residents.
683
94. Avoidance of tax by certain transactions in securities. 685
CHAPTER X-A
GENERAL ANTI-AVOIDANCE RULE
94A. Special measures in respect of transactions with persons located
in notified jurisdictional area.
688
Income-tax Act, 1961 Contents
xv
94B. Limitation on interest deduction in certain cases. 689
CHAPTER X-A
GENERAL ANTI-AVOIDANCE RULE
95. Applicability of General Anti-Avoidance Rule. 695
96. Impermissible avoidance arrangement. 695
97. Arrangement to lack commercial substance. 695
98. Consequences of impermissible avoidance arrangement. 696
99. Treatment of connected person and accommodating party. 697
100. Application of this Chapter. 697
101. Framing of guidelines. 697
102. Definitions. 697
CHAPTER XI
ADDITIONAL INCOME TAX ON UNDISTRIBUTED PROFITS
95 to 103. [***] 699
104 to 109. [***] 699
CHAPTER XII
DETERMINATION OF TAX IN CERTAIN SPECIAL CASES
110. Determination of tax where total income includes income on
which no tax is payable.
699
111. Tax on accumulated balance of recognised provident fund. 700
111A. Tax on short-term capital gains in certain cases. 700
112. Tax on long-term capital gains. 701
112A. Tax on long-term capital gains in certain cases. 704
113. Tax in the case of block assessment of search cases. 707
114. [***] 707
115. [***] 707
115A. Tax on dividends, royalty and technical service fees in the case of
foreign companies.
707
115AB. Tax on income from units purchased in foreign currency or
capital gains arising from their transfer.
711
115AC. Tax on income from bonds or Global Depository Receipts
purchased in foreign currency or capital gains arising from their
transfer.
713
115ACA. Tax on income from Global Depository Receipts purchased in
foreign currency or capital gains arising from their transfer.
715
115AD. Tax on income of Foreign Institutional Investors from securities
or capital gains arising from their transfer.
717
115B. Tax on profits and gains of life insurance business. 720
115BA. Tax on income of certain manufacturing domestic companies 721
115BAA. Tax on income of certain domestic companies. 722
Contents Income-tax Act, 1961
xvi
115BAB. Tax on income of new manufacturing domestic companies. 724
115BAC. Tax on income of individuals [, Hindu undivided family and
others
727
115BAD. Tax on income of certain resident co-operative societies. 731
115BB. Tax on winnings from lotteries, crossword puzzles, races
including horse races, card games and other games of any sort or
gambling or betting of any form or nature whatsoever.
734
115BBA. Tax on non-resident sportsmen or sports associations. 735
115BBB. Tax on income from units of an open-ended equity oriented fund
of the Unit Trust of India or of Mutual Funds.
736
115BBC. Anonymous donations to be taxed in certain cases. 736
115BBD. Tax on certain dividends received from foreign companies. 737
115BBDA. Tax on certain dividends received from domestic companies. 738
115BBE. Tax on income referred to in section 68 or section 69 or section
69A or section 69B or section 69C or section 69D.
739
115BBF. Tax on income from patent. 739
115BBG. Tax on income from transfer of carbon credits. 741
115BBH. Tax on income from virtual digital assets. 741
115BBI. Specified income of certain institutions. 742
115BBJ. Tax on winnings from online games. 742
CHAPTER XII-A
SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON-RESIDENTS
115C. Definitions. 743
115D. Special provision for computation of total income of nonresidents.
744
115E. Tax on investment income and long-term capital gains. 744
115F. Capital gains on transfer of foreign exchange assets not to be
charged in certain cases.
744
115G. Return of income not to be filed in certain cases. 745
115H. Benefit under Chapter to be available in certain cases even after
the assessee becomes resident.
746
115-I. Chapter not to apply if the assessee so chooses. 746
CHAPTER XII-B
SPECIAL PROVISIONS RELATING TO CERTAIN COMPANIES
115J. Special provisions relating to certain companies. 746
115JA. Deemed income relating to certain companies. 748
115JAA. Tax credit in respect of tax paid on deemed income relating to
certain companies.
751
115JB. Special provision for payment of tax by certain companies. 752
Income-tax Act, 1961 Contents
xvii
CHAPTER XII-BA
SPECIAL PROVISIONS RELATING TO CERTAIN PERSONS OTHER THAN A
COMPANY
115JC. Special provisions for payment of tax by certain persons other
than a company.
764
115JD. Tax credit for alternate minimum tax. 765
115JE. Application of other provisions of this Act. 766
115JEE. Application of this Chapter to certain persons. 766
115JF. Interpretation in this Chapter. 767
115JG. Conversion of an Indian branch of Foreign Company into
subsidiary Indian company.
768
115JH. Foreign company said to be resident in India. 769
CHAPTER XII-C
115K, 115L,
115M, 115N
[***] 769
CHAPTER XII-D
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED PROFITS OF
DOMESTIC COMPANIES
115-O. Tax on distributed profits of domestic companies. 770
115P. Interest payable for non-payment of tax by domestic companies. 773
115Q. When company is deemed to be in default. 773
CHAPTER XII-DA
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF
DOMESTIC COMPANY FOR BUY-BACK OF SHARES
115QA. Tax on distributed income to shareholders 773
115QB. Interest payable for non-payment of tax by company. 776
115QC. When company is deemed to be assessee in default. 777
CHAPTER XII-E
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME
115R. Tax on distributed income to unit holders. 777
115S. Interest payable for non-payment of tax. 780
115T. Unit Trust of India or Mutual Fund to be assessee in default. 780
CHAPTER XII-EA
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME BY
SECURITISATION TRUSTS
115TA. Tax on distributed income to investors. 781
115TB. Interest payable for non-payment of tax. 782
115TC. Securitisation trust to be assessee in default. 782
115TCA. Tax on income from securitisation trusts. 782
Contents Income-tax Act, 1961
xviii
CHAPTER XII-EB
SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCOME OF CERTAIN
TRUSTS AND INSTITUTIONS
115TD. Tax on accreted income. 784
115TE. Interest payable for non-payment of tax by specified person. 789
115TF. When specified person is deemed to be assessee in default. 789
CHAPTER XII-F
SPECIAL PROVISIONS RELATING TO TAX ON INCOME RECEIVED FROM
VENTURE CAPITAL COMPANIES AND VENTURE CAPITAL FUNDS
115U. Tax on income in certain cases. 790
CHAPTER XII-FA
SPECIAL PROVISIONS RELATING TO BUSINESS TRUSTS
115UA. Tax on income of unit holder and business trust. 791
CHAPTER XII-FB SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF
INVESTMENT FUNDS AND INCOME RECEIVED FROM SUCH FUNDS
115UB. Tax on income of investment fund and its unit holders. 792
CHAPTER XII-G
SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES
A.—Meaning of certain expressions
115V. Definitions. 794
B.—Computation of tonnage income from business of operating qualifying ships
115VA. Computation of profits and gains from the business of operating
qualifying ships.
795
115VB. Operating ships. 795
115VC. Qualifying company. 796
115VD. Qualifying ship. 796
115VE. Manner of computation of income under tonnage tax scheme. 797
115VF. Tonnage income. 797
115VG. Computation of tonnage income. 797
115VH. Calculation in case of joint operation, etc. 798
115V-I. Relevant shipping income. 799
115VJ. Treatment of common costs. 800
115VK. Depreciation. 801
115VL. General exclusion of deduction and set off, etc. 802
115VM. Exclusion of loss. 802
115VN. Chargeable gains from transfer of tonnage tax assets. 803
115VO. Exclusion from provisions of section 115JB. 803
C.—Procedure for option of tonnage tax scheme
115VP. Method and time of opting for tonnage tax scheme. 803
Income-tax Act, 1961 Contents
xix
115VQ. Period for which tonnage tax option to remain in force. 804
115VR. Renewal of tonnage tax scheme. 805
115VS. Prohibition to opt for tonnage tax scheme in certain cases. 805
D.—Conditions for applicability of tonnage tax scheme
115VT. Transfer of profits to Tonnage Tax Reserve Account. 805
115VU. Minimum training requirement for tonnage tax company. 807
115VV. Limit for charter in of tonnage. 807
115VW. Maintenance and audit of accounts. 808
115VX. Determination of tonnage. 808
E.—Amalgamation and demerger of shipping companies
115VY. Amalgamation. 809
115VZ. Demerger. 809
F.—Miscellaneous
115VZA. Effect of temporarily ceasing to operate qualifying ships. 809
G.—Provisions of this Chapter not to apply in certain cases
115VZB. Avoidance of tax. 810
115VZC. Exclusion from tonnage tax scheme. 810
CHAPTER XII-H
INCOME-TAX ON FRINGE BENEFITS
A.—Meaning of certain expressions
115W. Definitions. 810
B.—Basis of charge
115WA. Charge of fringe benefit tax. 811
115WB. Fringe benefits. 811
115WC. Value of fringe benefits. 814
C.—Procedure for filing of return in respect of fringe benefits, assessment and payment of tax in
respect thereof
115WD. Return of fringe benefits. 816
115WE. Assessment. 817
115WF. Best judgment assessment. 819
115WG. Fringe benefits escaping assessment. 819
115WH. Issue of notice where fringe benefits have escaped assessment. 820
115WI. Payment of fringe benefit tax. 820
115WJ. Advance tax in respect of fringe benefits. 821
115WK. Interest for default in furnishing return of fringe benefits. 823
115WKA. Recovery of fringe benefit tax by the employer from the
employee.
823
115WKB. Deemed payment of tax by employee. 823
Contents Income-tax Act, 1961
xx
115WL. Application of other provisions of this Act. 824
115WM. Chapter XII-H not to apply after a certain date. 824
CHAPTER XIII
INCOME TAX AUTHORITIES
A.—Appointment and control
116. Income-tax authorities. 824
117. Appointment of income-tax authorities. 824
118. Control of income-tax authorities. 825
119. Instructions to subordinate authorities. 825
119A. Taxpayer’s Charter. 826
B.—Jurisdiction
120. Jurisdiction of income-tax authorities. 827
121. [***] 829
121A. [***] 829
122. [***] 829
123. [***] 829
124. Jurisdiction of Assessing Officers. 829
CHAPTER XIV
PROCEDURE FOR ASSESSMENT
125. [***] 830
125A. [***] 830
126. [***] 830
127. Power to transfer cases. 831
128. [***] 832
129. Change of incumbent of an office. 832
130. Faceless jurisdiction of income-tax authorities. 833
130A. [***] 833
C.—Powers
131. Power regarding discovery, production of evidence, etc. 833
132. Search and seizure. 835
132A. Powers to requisition books of account, etc. 846
132B. Application of seized or requisitioned assets. 847
133. Power to call for information. 850
133A. Power of survey. 852
133B. Power to collect certain information. 856
133C. Power to call for information by prescribed income-tax authority. 856
134. Power to inspect registers of companies. 857
135. Powers of Principal Director General or Director General or
Principal Director or Director, Principal Chief Commissioner or
858
Income-tax Act, 1961 Contents
xxi
Chief Commissioner or Principal Commissioner or
Commissioner and Joint Commissioner.
135A. Faceless collection of information. 858
136. Proceedings before income-tax authorities to be judicial
proceedings.
859
D.—Disclosure of information
137. [***] 859
138. Disclosure of information respecting assessees. 859
CHAPTER XIV
PROCEDURE FOR ASSESSMENT
139. Return of income. 860
139A. Permanent account number. 875
139AA. Quoting of Aadhaar number. 880
139B. Scheme for submission of returns through Tax Return Preparers. 881
139C. Power of Board to dispense with furnishing documents, etc.,
with the return.
881
139D. Filing of return in electronic form. 882
140. Return by whom to be verified. 882
140A. Self-assessment. 884
140B. Tax on updated return. 887
141. [***] 889
141A. [***] 889
142. Enquiry before assessment. 890
142A. Estimation of value of assets by Valuation Officer. 893
142B. Faceless inquiry or Valuation. 894
143. Assessment. 895
144. Best judgement assessment. 903
144A. Power of Joint Commissioner to issue directions in certain cases. 904
144B. Faceless assessment. 905
144BA. Reference to Principal Commissioner or Commissioner in certain
cases.
921
144C. Reference to Dispute Resolution Panel. 925
145. Method of accounting. 927
145A. Method of accounting in certain cases. 929
145B. Taxability of certain income. 930
146. [***] 930
147. Income escaping assessment. 931
148. Issue of notice where income has escaped assessment. 936
148A. Procedure before issuance of notice under section 148. 938
Contents Income-tax Act, 1961
xxii
148B. Prior approval for assessment, reassessment or recomputation in
certain cases.
941
149. Time limit for notices under sections 148 and 148A. 942
150. Provision for cases where assessment is in pursuance of an order
on appeal, etc.
944
151. Sanction for issue of notice. 945
151A. Faceless assessment of income escaping assessment. 945
152. Other provisions. 946
153. Time limit for completion of assessment, reassessment and
recomputation.
947
153A. Assessment in case of search or requisition. 958
153B. Time limit for completion of assessment under section 153A. 960
153C. Assessment of income of any other person. 967
153D. Prior approval necessary for assessment in cases of search or
requisition
969
154. Rectification of mistake. 970
155. Other amendments. 972
156. Notice of demand. 982
CHAPTER XIV-A
SPECIAL PROVISION FOR AVOIDING REPETITIVE APPEALS
156A. Modification and revision of notice in certain cases. 983
157. Intimation of loss. 984
157A. Faceless assessment of income escaping assessment. 984
158. Intimation of assessment of firm. 985
CHAPTER XIV-A
SPECIAL PROVISION FOR AVOIDING REPETITIVE APPEALS
158A. Procedure when assessee claims identical question of law is
pending before High Court or Supreme Court.
985
158AA. Procedure when in an appeal by revenue an identical question of
law is pending before Supreme Court.
987
158AB. Procedure where an identical question of law is pending before
High Courts or Supreme Court.
987
CHAPTER XIV-B
SPECIAL PROCEDURE FOR ASSESSMENT OF SEARCH CASES
158B. Definitions 995
158BA. Assessment of total undisclosed income as a result of search. 995
158BB. Computation of total undisclosed income total income of block
period.
996
158BC. Procedure for block assessment. 999
158BD. Undisclosed income of any other person. 1000
Income-tax Act, 1961 Contents
xxiii
158BE. Time-limit for completion of block assessment. 1001
158BF. Certain interests and penalties not to be levied or imposed. 1003
158BFA. Levy of interest and penalty in certain cases. 1003
158BG. Authority competent to make assessment of block period. 1005
158BH. Application of other provisions of this Act. 1005
158BI [***] 1005
CHAPTER XV
LIABILITY IN SPECIAL CASES
A.—Legal Representatives
159. Legal Representatives 1005
B.—Representative assessees—General provisions
160. Representative assessee. 1007
161. Liability of representative assessee. 1008
162. Right of representative assessee to recover tax paid. 1008
C.—Representative assessees—Special cases
163. Who may be regarded as agent. 1009
164. Charge of tax where share of beneficiaries unknown. 1010
164A. Charge of tax in case of oral trust. 1013
165. Case where part of trust income is chargeable. 1013
D.—Representative assessees—Miscellaneous provisions
166. Direct assessment or recovery not barred. 1013
167. Remedies against property in cases of representative assessees. 1014
DD.—Firms, association of persons and body of individuals
167A. Charge of tax in the case of a firm. 1014
167B. Charge of tax where shares of members in association of persons
or body of individuals unknown, etc.
1014
167C. Liability of partners of limited liability partnership in liquidation 1015
E.—Executors
168. Executors. 1015
169. Right of executor to recover tax paid. 1016
F.—Succession to business or profession
170. Succession to business otherwise than on death. 1016
170A. Effect of order of tribunal or court in respect of business
reorganization.
1017
G.—Partition
171. Assessment after partition of a Hindu undivided family. 1018
H.—Profits of non-residents from occasional shipping business
172. Shipping business of non-residents. 1020
Contents Income-tax Act, 1961
xxiv
I.—Recovery of tax in respect of non-residents
173. Recovery of tax in respect of non-resident from his assets. 1021
J.—Persons leaving India
174. Assessment of persons leaving India. 1022
JA.–Association of persons or body of individuals or artificial juridical person formed for a
particular event or purpose
174A. Assessment of association of persons or body of individuals or
artificial juridical person formed for a particular event or
purpose.
1023
K.—Persons trying to alienate their assets
175. Assessment of persons likely to transfer property to avoid tax. 1023
L.—Discontinuance of business, or dissolution
176. Discontinued business. 1023
177. Association dissolved or business discontinued. 1025
178. Company in liquidation. 1025
M.—Private companies
179. Liability of directors of private company [***]. 1027
N.—Special provisions for certain kinds of income
180. Royalties or copyright fees for literary or artistic work. 1028
180A. Consideration for know-how. 1029
181. [***] 1029
CHAPTER XVI SPECIAL PROVISIONS APPLICABLE TO FIRMS
A.—Assessment of firms
182. [***] 1029
183. [***] 1029
184. Assessment as a firm. 1029
185. Assessment when section 184 not complied with. 1030
186. [***] 1030
C.—Changes in constitution, succession and dissolution
187. Change in constitution of a firm. 1030
188. Succession of one firm by another firm. 1031
188A. Joint and several liability of partners for tax payable by firm. 1031
189. Firm dissolved or business discontinued. 1031
189A. Provisions applicable to past assessments of firms. 1032
CHAPTER XVII
COLLECTION AND RECOVERY OF TAX
A.—General
190. Deduction at source and advance payment. 1032
191. Direct payment. 1032
Income-tax Act, 1961 Contents
xxv
B.—Deduction at source
192. Salary. 1033
192A. Payment of accumulated balance due to an employee. 1037
[***] 1038
193. Interest on securities. 1038
194. Dividends. 1040
194A. Interest other than “Interest on securities”. 1042
194B. Winnings from lottery or crossword puzzle, etc. 1047
194BA. Winnings from online games. 1048
194BB. Winnings from horse race. 1049
194C. Payments to contractors. 1049
194D. Insurance commission. 1056
194DA. Payment in respect of life insurance policy. 1056
194E. Payments to non-resident sportsmen or sports associations. 1057
194EE. Payments in respect of deposits under National Savings Scheme,
etc.
1057
194F. [***] 1057
194G. Commission, etc., on sale of lottery tickets. 1057
194H. Commission or brokerage. 1058
194-I. Rent. 1061
194-IA. Payment on transfer of certain immovable property other than
agricultural land.
1063
194-IB. Payment of rent by certain individuals or Hindu undivided
family.
1064
194-IC. Payment under specified agreement. 1065
194J. Fees for professional or technical services. 1065
194K. Income in respect of units. 1068
194L. [***] 1069
194LA. Payment of compensation on acquisition of certain immovable
property.
1069
194LB. Income by way of interest from infrastructure debt fund 1070
194LBA. Certain income from units of a business trust. 1070
194LBB. Income in respect of units of investment fund. 1071
194LBC. Income in respect of investment in securitisation trust. 1072
194LC. Income by way of interest from Indian company. 1072
194LD. Income by way of interest on certain bonds and Government
securities.
1074
194M. Payment of certain sums by certain individuals or Hindu
undivided family.
1075
Contents Income-tax Act, 1961
xxvi
194N. Payment of certain amounts in cash. 1075
194-O. Payment of certain sums by e-commerce operator to e-commerce
participant.
1077
194P. Deduction of tax in case of specified senior citizen. 1078
194Q. Deduction of tax at source on payment of certain sum for
purchase of goods.
1079
194R. Deduction of tax on benefit or perquisite in respect of business or
profession.
1080
194S. Payment on transfer of virtual digital asset. 1080
194T. Payments to partners of firms. 1082
195. Other sums. 1082
195A. Income payable “net of tax”. 1086
196. Interest or dividend or other sums payable to Government,
Reserve Bank or certain corporations.
1086
196A. Income in respect of units of non-residents. 1086
196B. Income from units. 1087
196C. Income from foreign currency bonds or shares of Indian
company.
1088
196D. Income of Foreign Institutional Investors from securities. 1088
197. Certificate for deduction at lower rate. 1089
197A. No deduction to be made in certain cases. 1091
197B. Lower deduction in certain cases for a limited period. 1093
198. Tax deducted is income received. 1093
199. Credit for tax deducted. 1094
200. Duty of person deducting tax. 1095
200A. Processing of statements of tax deducted at source and other
statements.
1096
201. Consequences for failure to deduct or pay. 1097
202. Deduction only one mode of recovery. 1101
203. Certificate for tax deducted. 1101
203A. Tax deduction and collection account number. 1102
203AA. [***] 1103
204. Meaning of “person responsible for paying”. 1103
205. Bar against direct demand on assessee. 1104
206. Persons deducting tax to furnish prescribed returns. 1104
206A. Furnishing of statement in respect of payment of any income to
residents without deduction of tax.
1106
206AA. Requirement to furnish Permanent Account Number. 1107
206AB [***] 1108
206B. [***] 1108
Income-tax Act, 1961 Contents
xxvii
BB.—Collection at source
206C. Profits and gains from the business of trading in alcoholic liquor,
forest produce, scrap, etc.
1108
206CA. Tax-collection account number. 1121
206CB. Processing of statements of tax collected at source. 1121
206CC. Requirement to furnish Permanent Account Number by
collectee.
1122
206CCA. [***] 1123
C.—Advance payment of tax
207. Liability for payment of advance tax. 1124
208. Conditions of liability to pay advance tax. 1124
209. Computation of advance tax. 1124
209A. [***] 1126
210. Payment of advance tax by the assessee of his own accord or in
pursuance of order of Assessing Officer.
1126
211. Instalments of advance tax and due dates. 1128
212. [***] 1129
213. [***] 1129
214. Interest payable by Government. 1129
215. Interest payable by assessee. 1131
216. Interest payable by assessee in case of underestimate, etc. 1132
217. Interest payable by assessee when no estimate made. 1133
218. When assessee deemed to be in default. 1134
219. Credit for advance tax. 1134
D.—Collection and recovery
220. When tax payable and when assessee deemed in default. 1134
CHAPTER XVIII
RELIEF RESPECTING TAX ON DIVIDENDS IN CERTAIN CASES
221. Penalty payable when tax in default. 1139
222. Certificate by Tax Recovery Officer. 1139
223. Tax Recovery Officer by whom recovery is to be effected. 1140
224. Validity of certificate and cancellation or amendment thereof. 1141
225. Stay of proceedings in pursuance of certificate and amendment
or cancellation thereof.
1141
226. Other modes of recovery. 1141
227. Recovery through State Government. 1144
228. [***] 1144
228A. Recovery of tax in pursuance of agreements with foreign
countries.
1144
Contents Income-tax Act, 1961
xxviii
229. Recovery of penalties, fine, interest and other sums. 1145
230. Tax clearance certificate. 1145
230A. [***] 1147
231. Faceless collection and recovery of tax. 1148
232. Recovery by suit or under other law not affected. 1148
E.—Tax payable under provisional assessment
233. [***] 1149
234. [***] 1149
F.—Interest chargeable in certain cases
234A. Interest for defaults in furnishing return of income. 1149
234B. Interest for defaults in payment of advance tax. 1152
234C. Interest for deferment of advance tax. 1155
234D. Interest on excess refund. 1159
G.—Levy of fee in certain cases
234E. Fee for defaults in furnishing statements. 1160
234F. Fee for default in furnishing return of income. 1160
234G. Fee for default relating to statement or certificate. 1161
234H. Fee for default relating to intimation of Aadhaar number. 1161
CHAPTER XVIII
RELIEF RESPECTING TAX ON DIVIDENDS IN CERTAIN CASES
235. [***] 1161
236. Relief to company in respect of dividend paid out of past taxed
profits.
1161
236A. Relief to certain charitable institutions or funds in respect of
certain dividends.
1162
CHAPTER XIX
REFUNDS
237. Refunds. 1163
238. Person entitled to claim refund in certain special cases. 1163
239. Form of claim for refund and limitation. 1164
239A. Refund for denying liability to deduct tax in certain cases. 1164
240. Refund on appeal, etc. 1165
241. [***] 1165
241A. Withholding of refund in certain cases. 1165
242. Correctness of assessment not to be questioned. 1166
243. Interest on delayed refunds. 1166
244. Interest on refund where no claim is needed. 1166
244A. Interest on refunds. 1168
Income-tax Act, 1961 Contents
xxix
245. Set off and withholding of refunds in certain cases. 1171
CHAPTER XIX-A
SETTLEMENT OF CASES
245A. Definitions. 1172
245AA. Interim Boards for Settlement. 1174
245B. Income-tax Settlement Commission. 1174
CHAPTER XIX-AA
DISPUTE RESOLUTION COMMITTEE IN CERTAIN CASES
245BA. Jurisdiction and powers of Settlement Commission. 1175
245BB. Vice-Chairman to act as Chairman or to discharge his functions
in certain circumstances.
1175
245BC. Power of Chairman to transfer cases from one Bench to another. 1176
245BD. Decision to be by majority. 1176
245C. Application for settlement of cases. 1176
245D. Procedure on receipt of an application under section 245C. 1180
245DD. Power of Settlement Commission to order provisional
attachment to protect revenue.
1187
245E. Power of Settlement Commission to reopen completed
proceedings.
1187
245F. Powers and procedure of Settlement Commission. 1188
245G. Inspection, etc., of reports. 1189
245H. Power of Settlement Commission to grant immunity from
prosecution and penalty.
1189
245HA. Abatement of proceeding before Settlement Commission. 1191
245HAA. Credit for tax paid in case of abatement of proceedings. 1192
245-I. Order of settlement to be conclusive. 1192
245J. Recovery of sums due under order of settlement. 1192
245K. Bar on subsequent application for settlement. 1192
245L. Proceedings before Settlement Commission to be judicial
proceedings.
1193
245M. Option to withdraw pending application. 1193
CHAPTER XIX-AA
DISPUTE RESOLUTION COMMITTEE IN CERTAIN CASES
245MA. Dispute Resolution Committee. 1194
CHAPTER XIX-B
ADVANCE RULINGS
245N. Definitions. 1197
245-O. Authority for Advance Rulings. 1199
245-OA. Qualifications, terms and conditions of service of Chairman,
Vice-Chairman and Member.
1201
Contents Income-tax Act, 1961
xxx
245-OB. Board for Advance Rulings. 1202
245P. Vacancies, etc., not to invalidate proceedings. 1202
245Q. Application for advance ruling. 1202
245R. Procedure on receipt of application. 1203
245RR. Appellate authority not to proceed in certain cases. 1205
245S. Applicability of advance ruling. 1206
245T. Advance ruling to be void in certain circumstances. 1206
245U. Powers of the Authority. 1206
245V. Procedure of Authority. 1207
245W. Appeal. 1207
CHAPTER XX
APPEALS AND REVISION
A.—Appeals to the Joint Commissioner (Appeals) and Commissioner (Appeals)
246. Appealable orders before Joint Commissioner (Appeals). 1208
246A. Appealable orders before Commissioner (Appeals). 1211
247. [***] 1214
248. Appeal by a person denying liability to deduct tax in certain
cases.
1214
249. Form of appeal and limitation. 1215
250. Procedure in appeal. 1216
251. Powers of the Joint Commissioner (Appeals) or the
Commissioner (Appeals)
1219
B.—Appeals to the Appellate Tribunal
252. Appellate Tribunal. 1221
252A. Qualifications, terms and conditions of service of President, VicePresident and Member.
1222
253. Appeals to the Appellate Tribunal. 1222
254. Orders of Appellate Tribunal. 1226
255. Procedure of Appellate Tribunal. 1231
C.—Reference to High Court
256. Statement of case to the High Court. 1233
257. Statement of case to the Supreme Court in certain cases. 1234
258. Power of High Court or Supreme Court to require statement to
be amended.
1234
259. Case before High Court to be heard by not less than two judges. 1234
260. Decision of High Court or Supreme Court on the case stated. 1234
CC.—Appeals to High Court
260A. Appeal to High Court. 1235
260B. Case before High Court to be heard by not less than two Judges. 1237
Income-tax Act, 1961 Contents
xxxi
D.—Appeals to the Supreme Court
261. Appeal to Supreme Court. 1237
262. Hearing before Supreme Court. 1237
E.—Revision by the Principal Commissioner or Commissioner
263. Revision of orders prejudicial to revenue. 1238
264. Revision of other orders. 1243
264A. Faceless revision of orders. 1245
264B. Faceless effect of orders. 1245
F.—General
265. Tax to be paid notwithstanding reference, etc. 1246
266. Execution for costs awarded by the Supreme Court. 1246
267. Amendment of assessment on appeal. 1247
268. Exclusion of time taken for copy. 1247
268A. Filing of appeal or application for reference by income-tax
authority.
1247
269. Definition of “High Court”. 1248

CHAPTER XX-A

ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER
TO COUNTERACT EVASION OF TAX
269A. Definitions. 1249
269AB. Registration of certain transactions. 1252
269B. Competent authority. 1252
269C. Immovable property in respect of which proceedings for
acquisition may be taken.
1253
269D. Preliminary notice. 1254
269E. Objections. 1255
269F. Hearing of objections. 1255
269G. Appeal against order for acquisition. 1256
269H. Appeal to High Court. 1257
269-I. Vesting of property in Central Government. 1258
269J. Compensation. 1259
269K. Payment or deposit of compensation. 1260
269L. Assistance by Valuation Officers. 1262
269M. Powers of competent authority. 1262
269N. Rectification of mistakes. 1262
269-O. Appearance by authorised representative or registered valuer. 1262
269P. Statement to be furnished in respect of transfers of immovable
property.
1263
269Q. Chapter not to apply to transfers to relatives. 1263
Contents Income-tax Act, 1961
xxxii
269R. Properties liable for acquisition under this Chapter not to be
acquired under other laws.
1264
269RR. Chapter not to apply where transfer of immovable property
made after a certain date.
1264
269S. Chapter not to extend to State of Jammu and Kashmir. 1264

CHAPTER XX-B

REQUIREMENT AS TO MODE OF ACCEPTANCE, PAYMENT OR REPAYMENT IN

CERTAIN CASES TO COUNTERACT EVASION OF TAX
269SS. Mode of taking or accepting certain loans, deposits and specified
sum.
1264
269ST. Mode of undertaking transactions. 1267
269SU. Acceptance of payment through prescribed electronic modes. 1268
269T. Mode of repayment of certain loans or deposits. 1268
269TT. Mode of repayment of Special Bearer Bonds, 1991. 1270

CHAPTER XX-C

PURCHASE BY CENTRAL GOVERNMENT OF IMMOVABLE PROPERTIES IN
CERTAIN CASES OF TRANSFER
269U. Commencement of Chapter. 1271
269UA. Definitions. 1271
269UB. Appropriate authority. 1273
269UC. Restrictions on transfer of immovable property. 1274
269UD. Order by appropriate authority for purchase by Central
Government of immovable property.
1275
269UE. Vesting of property in Central Government. 1276
269UF. Consideration for purchase of immovable property by Central
Government.
1277
269UG. Payment or deposit of consideration. 1277
269UH. Re-vesting of property in the transferor on failure of payment or
deposit of consideration.
1278
269UI. Powers of the appropriate authority. 1279
269UJ. Rectification of mistakes. 1279
269UK. Restrictions on revocation or alteration of certain agreements for
the transfer of immovable property or on transfer of certain
immovable property.
1279
269UL. Restrictions on registration, etc., of documents in respect of
transfer of immovable property.
1279
269UM. Immunity to transferor against claims of transferee for transfer. 1280
269UN. Order of appropriate authority to be final and conclusive. 1280
269UO. Chapter not to apply to certain transfers. 1280
269UP. Chapter not to apply where transfer of immovable property
effected after certain date.
1280
Income-tax Act, 1961 Contents

CHAPTER XXI

PENALTIES IMPOSABLE
270. [***] 1280
270A. Penalty for under reporting and misreporting of income. 1280
270AA. Immunity from imposition of penalty, etc. 1284
271. Failure to furnish returns, comply with notices, concealment of
income, etc.
1285
271A. Failure to keep, maintain or retain books of account, documents,
etc.
1295
271AA. Penalty for failure to keep and maintain information and
document, etc., in respect of certain transactions.
1296
271AAA. Penalty where search has been initiated. 1296
271AAB. Penalty where search has been initiated. 1298
271AAC. Penalty in respect of certain income. 1300
271AAD. Penalty for false entry, etc. in books of account. 1300
271AAE. Benefit to related persons. 1301
271B. Failure to get accounts audited. 1301
271BA. Penalty for failure to furnish report under section 92E. 1302
271BB [***] 1302
271C. Penalty for failure to deduct tax at source. 1302
271CA. Penalty for failure to collect tax at source. 1303
271D. Penalty for failure to comply with the provisions of section
269SS.
1303
271DA. Penalty for failure to comply with provisions of section 269ST. 1304
271DB. Penalty for failure to comply with provisions of section 269SU. 1305
271E. Penalty for failure to comply with the provisions of section 269T. 1305
271F. Penalty for failure to furnish return of income. 1306
271FA. Penalty for failure to furnish statement of financial transaction or
reportable account.
1306
271FAA. Penalty for furnishing inaccurate statement of financial
transaction or reportable account.
1307
271FAB. Penalty for failure to furnish statement or information or
document by an eligible investment fund.
1308
271FB. Penalty for failure to furnish return of fringe benefits. 1308
271G. Penalty for failure to furnish information or document under
section 92D.
1308
271GA. Penalty for failure to furnish information or document under
section 285A.
1308
271GB. Penalty for failure to furnish report or for furnishing inaccurate
report under section 286.
1308
Contents Income-tax Act, 1961
271GC. Penalty for failure to submit statement under section 285. 1309
271H. Penalty for failure to furnish statements, etc. 1309
271-I. Penalty for failure to furnish information or furnishing
inaccurate information under section 195.
1310
271J. Penalty for furnishing incorrect information in reports or
certificates.
1310
271K. Penalty for failure to furnish statements, etc. 1311
272. [***] 1311
272A. Penalty for failure to answer questions, sign statements, furnish
information, returns or statements, allow inspections, etc.
1311
272AA. Penalty for failure to comply with the provisions of section 133B. 1314
272B. Penalty for failure to comply with the provisions of section 139A. 1314
272BB. Penalty for failure to comply with the provisions of section 203A. 1315
272BBB. Penalty for failure to comply with the provisions of section
206CA.
1315
273. False estimate of, or failure to pay, advance tax. 1315
273A. Power to reduce or waive penalty, etc., in certain cases. 1318

CHAPTER XXII

OFFENCES AND PROSECUTIONS
273AA. Power of Principal Commissioner or Commissioner to grant
immunity from penalty.
1321
273B. Penalty not to be imposed in certain cases. 1322
274. Procedure. 1323
275. Bar of limitation for imposing penalties. 1324

CHAPTER XXII

OFFENCES AND PROSECUTIONS
275A. Contravention of order made under sub-section (3) of section
132.
1327
275B. Failure to comply with the provisions of clause (iib) of subsection (1) of section 132.
1327
276. Removal, concealment, transfer or delivery of property to thwart
tax recovery.
1327
276A. Failure to comply with the provisions of sub-sections (1) and (3)
of section 178.
1327
276AA. [***] 1328
276AB. Failure to comply with the provisions of sections 269UC, 269UE
and 269UL.
1328
276B. Failure to pay tax to the credit of Central Government under
Chapter XII-D or XVII-B.
1328
276BB. Failure to pay the tax collected at source. 1329
Income-tax Act, 1961 Contents

276C. Wilful attempt to evade tax, etc. 1329
276CC. Failure to furnish returns of income. 1331
276CCC. Failure to furnish return of income in search cases. 1332
276D. Failure to produce accounts and documents. 1332
276DD. [***] 1333
276E. [***] 1333
277. False statement in verification, etc. 1333
277A. Falsification of books of account or document, etc. 1333
278. Abetment of false return, etc. 1333
278A. Punishment for second and subsequent offences. 1334
278AA. Punishment not to be imposed in certain cases. 1334
278AB. Power of Principal Commissioner or Commissioner to grant
immunity from prosecution.
1334
278B. Offences by companies. 1335
278C. Offences by Hindu undivided families. 1336
278D. Presumption as to assets, books of account, etc., in certain cases. 1336
278E. Presumption as to culpable mental state. 1337
279. Prosecution to be at instance of Principal Chief Commissioner,
Chief Commissioner or Principal Commissioner or
Commissioner.
1337
279A. Certain offences to be non-cognizable. 1339
279B. Proof of entries in records or documents. 1339
280. Disclosure of particulars by public servants. 1339
280A. Special Courts. 1339
280B. Offences triable by Special Court. 1340
280C. Trial of offences as summons case. 1340
280D. Application of Code of Criminal Procedure, 1973 to proceedings
before Special Court.
1340

CHAPTER XXII-A

ANNUITY DEPOSITS

CHAPTER XXII-B

TAX CREDIT CERTIFICATES
280Y. [***] 1341
280Z. [***] 1341
280ZA. [***] 1341
280ZB. [***] 1341
280ZC. [***] 1341
280ZD. [***] 1341
280ZE. [***] 1341
Contents Income-tax Act, 1961

CHAPTER XXIII

MISCELLANEOUS
281. Certain transfers to be void. 1342
281A. [***] 1342
281B. Provisional attachment to protect revenue in certain cases. 1342
282. Service of notice generally. 1345
282A. Authentication of notices and other documents. 1346
282B. [***] 1346
283. Service of notice when family is disrupted or firm, etc., is
dissolved.
1347
284. Service of notice in the case of discontinued business. 1347
285. Submission of statement by a non-resident having liaison office. 1347
285A. Furnishing of information or documents by an Indian concern in
certain cases.
1347
285B. Submission of statements by producers of cinematograph films
or persons engaged in specified activity.
1348
285BA. Obligation to furnish statement of financial transaction or
reportable account.
1349
285BB. Annual information statement. 1352
286. Furnishing of report in respect of international group. 1353
287. Publication of information respecting assessees in certain cases. 1356
287A. Appearance by registered valuer in certain matters. 1357
288. Appearance by authorised representative. 1357
288A. Rounding off of income. 1360
288B. Rounding off amount payable and refund due. 1361
289. Receipt to be given. 1361
290. Indemnity. 1361
291. Power to tender immunity from prosecution. 1361
292. Cognizance of offences. 1362
292A. Section 360 of the Code of Criminal Procedure, 1973, and the
Probation of Offenders Act, 1958, not to apply.
1362
292B. Return of income, etc., not to be invalid on certain grounds. 1362
292BB. Notice deemed to be valid in certain circumstances. 1362
292C. Presumption as to assets, books of account, etc. 1363
292CC. Authorisation and assessment in case of search or requisition. 1363
293. Bar of suits in civil courts. 1364
293A. Power to make exemption, etc., in relation to participation in the
business of prospecting for, extraction, etc., of mineral oils.
1364
293B. Power of Central Government or Board to condone delays in
obtaining approval.
1365
Income-tax Act, 1961 Contents
293C. Power to withdraw approval 1365
293D. Faceless approval or registration. 1365
294. Act to have effect pending legislative provision for charge of tax. 1366
294A. Power to make exemption, etc., in relation to certain Union
territories. 1366
295. Power to make rules. 1366
296. Rules and certain notifications to be placed before Parliament. 1369
297. Repeals and savings. 1370
298. Power to remove difficulties. 1371
The First Schedule Insurance Business
The Second Schedule 1374
The Third Schedule 1395
The Fourth Schedule 1395
The Fifth Schedule 1409
The Sixth Schedule 1410
The Seventh Schedule 1410
The Eighth Schedule 1412
The Ninth Schedule 1412
The Tenth Schedule 1412
The Eleventh Schedule 1412
The Twelfth Schedule 1413
The Thirteenth Schedule 1414
The Fourteenth Schedule 1418

Appendix

Relevant Circulars 1423
Equalisation Levy 1490
The Direct Tax Vivad Se Vishwas Scheme, 2024 1500
The Finance Act, 2025 1509
The First Schedule Finance Act 2025 1551