E-Advance Rulings Scheme The Finance Act, 2021 replaced the Authority for Advance Rulings with the Board for Advance Rulings (BAR) and empowered the Central Government to establish a faceless mechanism for advance rulings. Accordingly, the e-Advance Rulings Scheme, 2022, was notified on 18-01-2022 to process applications digitally and ensure efficiency and transparency. Application Procedure Applications… Read More »

Advance Ruling under Income Tax An Advance Ruling is a decision by the Board for Advance Rulings (BAR) on the tax implications of a transaction or arrangement. The main objective of an advance ruling is to provide clarity and certainty regarding the tax treatment of a transaction, thereby helping to avoid future disputes with the… Read More »

Income-tax Authorities AY 2026-27 Introduction The Central Government is empowered to appoint various Income-tax authorities and delegate powers to them under the Income-tax Act. These authorities shall exercise all or any of the powers conferred on them and perform all or any of the functions assigned to them by or under the Income-tax Act. Hierarchy… Read More »

Evolution of Faceless Proceedings Faceless proceedings have evolved as part of the Department’s e-Governance efforts: Email-based Assessment (2015): Introduced on a pilot basis in select cities, using email as a medium for assessment. E-Proceedings: Enabled online communication between taxpayers and the Department through the e-filing portal. E-Assessment Scheme, 2019: Notified under Section 143(3A)-(3C) pursuant to… Read More »

Levy of Interest and Penalty in Block Assessment Introduction Sections 158BF and 158BFA govern the levy of interest and penalty in block assessments under Chapter XIV-B. Section 158BF provides immunity from the levy of specified interest and penalty for undisclosed income assessed for the block period, while Section 158BFA empowers authorities to levy interest and penalty in defined circumstances and prescribes procedural… Read More »

Limitation Period for the Completion of Block Assessment Introduction Section 158BE prescribes the time limits for completing a block assessment. The assessment must be completed within a specified period from the end of the quarter in which the last authorisation for a search under Section 132 or a requisition under Section 132A was executed or made. Primary limitation period The… Read More »

Assessment of Undisclosed Income of Any Other Person Introduction Section 158BD governs cases where undisclosed income detected during a search under Section 132 or requisition under Section 132A pertains to a person other than the person searched (specified person). In such situations, the Assessing Officer (AO) who conducted the search must transfer the seized or requisitioned material and related information… Read More »

Procedure for Block Assessment Introduction Section 158BC lays down the procedure for conducting the block assessment of undisclosed income detected as a result of a search under Section 132 or a requisition under Section 132A. It authorises the Assessing Officer (AO) to issue a notice for filing the return for the block period, determine the total undisclosed income and pass… Read More »

Computation of Total Undisclosed Income of the Block Period Introduction Section 158BB specifies the method for computing total undisclosed income during a block assessment. The Finance Act 2025 introduces a simplified computation mechanism, under which undisclosed income is the aggregate of (a) undisclosed income declared by the assessee and (b) undisclosed income determined by the Assessing… Read More »