CBDT Chairman releases Handbook of the Board for Advance Rulings to Provide General Guidance and Assistance to Taxpayers
The Chairman of Central Board of Direct Taxes (CBDT) has released a Handbook of the Board for Advance Rulings to provide general guidance and assistance on the scheme of Advance Rulings under the Indian Income-tax Act, 1961 to the taxpayers on 18th August 2023. In September 2021, the CBDT established three Boards for Advance Rulings. Additionally, through Notification No. 07 of 2022,...
The Chairman of Central Board of Direct Taxes (CBDT) has released a Handbook of the Board for Advance Rulings to provide general guidance and assistance on the scheme of Advance Rulings under the Indian Income-tax Act, 1961 to the taxpayers on 18th August 2023.
In September 2021, the CBDT established three Boards for Advance Rulings. Additionally, through Notification No. 07 of 2022, the E-advance Ruling Scheme was introduced, aiming to streamline the advance rulings process with minimal interactions and to enhance efficiency, transparency, and accountability.
Following that, the Advance Rulings Boards have been put into operation in both Delhi and Mumbai. These Boards commenced their operations using email-based methods and conducting hearings via video conferencing.
A foreign investor who is not a resident can secure clarity about their income tax obligations before making an investment in India. Additionally, resident entities can also seek a Ruling to determine the taxability of a transaction and prevent prolonged legal disputes.
This Scheme is open to resident taxpayers as well, who can seek an advance ruling regarding their tax liability related to transactions amounting to Rs. 100 crore or more in total. Furthermore, Public Sector Undertakings can utilize the opportunity to obtain advance rulings on questions related to facts or law that are pending before any income-tax authority or Appellate Tribunal.
The handbook covers 5 chapters, 1 Appendix and 2 Annexures. The list of chapters as follows:
- Chapter 1 - Advance Ruling under the Indian Direct Tax Laws
- Chapter 2 - Requisites for obtaining Advance Ruling
- Chapter 3 - Procedure of the Bar
- Chapter 4 - Relevant Provisions of Income Tax Act, 1961 (Advance Rulings)
- Chapter 5 - Relevant Forms and Notifications
Appendix 1 - Resource Material
Annexure 1 - Relevant Provisions of the Income Tax Act, 1961 (Residence in India)
Annexure 2 - List of the Countries with which India has DTAA
To Read the full text of the Order CLICK HERE
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