2AHouse Rent Allowance (HRA) 1
2BLeave Travel Concession/Assistance (LTC/ LTA) 6
2BAVoluntary retirement compensation 23
2BBSpecial allowances 28
2BBAFamily pension to heirs of Armed Forces (including Para-Military Forces) member 32
2BBBPercentage of Government grant for considering University, Hospital, etc., as substantially financed under section 10(23C) (iiiab)/(iiiac) 33
2CApplication for grant of approval of a fund/ trust/institution/university/other educational institution/hospital/other medical institution under first proviso to section 10(23C) 35
2DB &Pension fund 42 2DC
2DCA Computation of minimum investment/lending and exempt income for the purposes of section 10(23FE) 46
2DDComputation of exempt income of specified fund for the purposes of section 10(23FF) 66
2FGuidelines for setting up an Infrastructure
3AExemption of medical benefits from perquisite value in respect of medical treatment of prescribed diseases/ailments in hospitals approved by PCCIT/CCIT 145
3BComputation of annual accretion 158
4Unrealised Rent 161
5Depreciation 163
5ACFurnishing of audit report under section 33AB(2) 203
5ADFurnishing of audit report under section 33ABA(2) 204
5C, 5D &Guidelines, conditions, etc., for approval to 5Ebe granted to a Research Association/University/College/Other Institution 205
5CAIntimation for continuance of approval under section 35(1)(ii)/(iia)/(iii) 210
5FGuidelines, conditions, etc., for approval to be granted to a company registered in India 212
5GTaxation on income from patent 215
6Prescribed authorities for certain provisions of section 35 & conditions for approval under section 35(2AA) & (2AB) 216
6AExpenditure for obtaining right to use spectrum for telecommunication services 220
6AAD & Guidelines for approval of agricultural 6AAEextension project & conditions for notification under section 35CCC 221
6AAF,Guidelines for approval of skill develop6AAG &ment project & conditions for notification 6AAHunder section 35CCD 225
6ABForm of audit report for claiming deduction under sections 35D & 35E 230
6ABA Computation of aggregate average advances for purposes of section 36(1)(viia) 231
CONTENTS
6ABAAInfrastructure facility for the purposes of section 36(1)(viii) 233
6ABBAOther permissible electronic modes for payment/receipt 235
6ABBBFurnishing of form of statement regarding preliminary expenses under section 35D 236
6DDDisallowance of cash payments 237
6DDA & Recognised stock exchange in respect of trad6DDBing in derivatives 251
6EAmount carried over to a reserve for unexpired risks in case of insurance business (other than life insurance) 254
6EA &Taxation of interest income of certain insti6EBtutions, banks, company, etc., in relation to specified categories of bad or doubtful debts 255
6FBooks of account and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain professions 259
6GReport of audit of accounts to be furnished under section 44AB 267
6GAForm of report of audit of accounts to be furnished under section 44DA(2) 280
6HForm of report of an accountant under section 50B(3) 281
7Income which is partially agricultural and partially from business 283
7AIncome from the manufacture of rubber 288
7BIncome from the manufacture of coffee 290
8Income from the manufacture of tea 292
8AAMethod of determination of period of holding of capital asset in certain cases 299
8ABAttribution of income taxable under section 45(4) to the capital assets remaining with the specified entity, under section 48 301
8ACComputation of short-term capital gains and written down value under section 50 where depreciation on goodwill has been obtained 314
8ADComputation of capital gains for purposes of section 45(1B) 322
8BGuidelines for notification of zero coupon bonds 337
8CComputation of pro rata amount of discount on a zero coupon bond for purposes of section 36(1)(iiia) 340
8DMethod for determining amount of expenditure in relation to income not includible in total income 341
9ADeduction in respect of expenditure on production of feature films 353
9BDeduction in respect of expenditure on acquisition of distribution rights of feature films 360
9CConditions for carrying forward or set-off of accumulated loss and unabsorbed depreciation allowance in case of amalgamation 363
9DCalculation of taxable interest relating to contribution in a provident fund/ recognised provident fund, exceeding specified limit 367
10Determination of income in the case of nonresidents 389
10A toComputation of arm’s length price 395 10CA
10CBComputation of interest income pursuant to secondary adjustments 497
10D &Information and documents to be kept & 10DAmaintained under section 92D 505
CONTENTS
10DBFurnishing of report in respect of an international group 513
10EReport from an accountant to be furnished under section 92E 518
10F toAdvance Pricing Agreement Scheme 524 10T
10RBRelief in tax payable under section 115JB(1) due to operation of section 115JB(2D) 544
10TA to Safe Harbour Rules for International Trans10THD actions & Specified Domestic Transactions 546
10UGAAR not to apply in certain cases 565
10UADetermination of consequences of impermissible avoidance arrangement 573
10UB toReference to PCIT/CIT for invocation of 10UFGAAR 575
10V toCertain activities not to constitute business 10VBconnection in India 579
11AMedical authority for certifying autism, cerebral palsy and multiple disabilities and certificate to be obtained from the medical authority for the purposes of deduction under sections 80DD & 80U 587
11AARequirement for approval of institution or fund under section 80G(5)(vi) 672
11BDeduction in respect of rents paid 678
11DDDeduction in respect of medical treatment of specified diseases & ailments 679
11EAGuidelines for specifying industrially backward districts for the purpose of deduction under section 80-IB(5) 681
11-OA &Guidelines for notification of certain speci11-OBfied businesses under section 35AD 685
11P toTonnage Tax Scheme for Shipping Com11Tpanies 691
11U &Determination of fair market value of prop11UAerty other than immovable property 696
11UAA &Special provision for full value of conside11UADration for transfer of share other than quoted share 728
11UABDetermination of Fair Market Value for Inventory 730
11UACCases in which provisions of section 56(2)(x) not to apply 731
11UACAComputation of income in respect of certain life insurance policies chargeable to tax under section 56(2)(xiii) 747
11UAEComputation of fair market value of capital assets for the purposes of section 50B 749
11UB &Determination of value of assets and ap11UCportionment of income in certain cases 752
11UDThresholds for the purposes of significant economic presence 765
11UE &Indirect transfer prior to 28-5-2012 of assets
11UFsituate in India 767
12Return of income 777
12APreparation of return by authorised representative 794
12AAVerification of return by whom 795
12ABConditions for furnishing return of income by persons referred to in section 139(1)(b) 797
12ACUpdated return 798
12ADReturn of income under section 170A 822
12CTax on income accruing/arising to/received from venture capital companies and venture capital funds 827
12CATax on income of unit holder and business trust 828
12CBTax on income of investment fund and its unit holders 829
12CCTax on income from Securitisation Trusts 830
12DPower to call for information by prescribed Income-tax Authority 831
12ERegular assessment 833
12FInquiry before assessment 834
13Procedure to requisition services under section 132(2) and to make a reference under section 132(9D) 835
13AValuation of property under section 132(9D) 837
14Inquiry before assessment 839
14A &Special audit 840
14B
15Notice of demand 849
15ADeclaration under section 158A 851
16Application under section 158AB to defer filing of appeal before the ITAT or the jurisdictional High Court 853
16BExemption in respect of remuneration/fee/ any other income received by consultant or his employee 856
16CExemption in respect of income of a fund for the welfare of employees or their dependants 857
16CCForm of audit report prescribed under 10th proviso to section 10(23C) 859
16DAccountant’s report for claiming deduction under section 10AA 864
16DDSpecial provision in respect of newly established undertakings in free trade zone, etc. 866
17Exercise of option, etc., under section 11 or 10(21) 867
17AApplication for registration of charitable or religious trusts, etc. 874
17AABooks of account and other documents to be kept and maintained 882
17BAudit report in case of charitable or religious trusts 888
17CForms or modes of investment or deposits by a charitable or religious trust or institution 893
17CASpecial provisions relating to voluntary contributions received by electoral trust 897
17CBTax on accreted income of certain Trusts and Institutions 907
18AAAPrescribed authority for the purposes of section 80G(2)(a)(iiif) 914
18AAAAA Guidelines for specifying an association/ institution for the purposes of section 80G(2)(c) 915
18ABFurnishing of statement of particulars and certificate under section 80G(5)(viii)/(ix) or under section 35(1A) 916
18BBBForm of audit report for claiming deduction under section 80-IA/80-IB/80-IC 918
18BBEComputation of profits of certain activities forming integral part of a highway project 922
18CEligibility of industrial parks for benefit under section 80-IA(4)(iii) 924
19AB Form of report for claiming deduction under section 80JJAA 934
19ACForm of certificate to be furnished under section 80QQB(3) 935
19ADPrescribed authority & form of certificate to be furnished under section 80RRB(2) 936
CONTENTS
19AEForm of accountant’s report to be furnished under section 80LA(3) 937
20Guidelines for approval under section 80C(2)(xix) 938
20AGuidelines for approval under section 80C(2)(xx) 940
21ARelief when salary is paid in arrears or in advance, etc. 942
21AA Furnishing of particulars for claiming refund under section 89 946
21AAATaxation of income from retirement benefit account maintained in a notified country 947
21ABInformation to be provided for claiming relief under an agreement referred to in sections 90 & 90A 949
21ACFurnishing of authorisation and maintenance of documents, etc., for the purposes of section 94A 951
21ADExercise of option under section 115BA(4) 953
21AEExercise of option under section 115BAA(5) 954
21AFExercise of option under section 115BAB(7) 958
21AGExercise of option under section 115BAC(5) 959
21AGAExercise of option under section 115BAC(6) 961
21AHExercise of option under section 115BAD(5) 967
21AHAExercise of option under section 115BAE(5) 968
21AI,Other conditions for specified fund & com-
21AIA &putation of exempt income of such fund for 21AJAthe purposes of section 10(4D) 969
21AJ & Determination of income of a specified fund
21AJAAunder section 115AD(1A)/(1B) 974
21AKExemption in respect of any income accrued/arisen to/received by a non-resident with regard to specified forwards contracts/
derivatives entered into with an offshore banking unit of an IFSC 978
21ALOther conditions required to be fulfilled by the original fund 980
26 toDeduction of tax at source 982 37BC
29AForm of certificate to be furnished under section 80QQB(4)/80RRB(3) 1148
37C toCollection of tax at source 1149 37J
38 & 39Payment of advance tax 1174
40BAccountant’s report u/s. 115JB(4) 1176
40BAAccountant’s report u/s. 115JC(3) 1177
40BBDetermination of amount received by domestic company in respect of issue of shares 1178
40GRefund claim under section 239A 1181
42 to 44Tax clearance certificates 1182
44DAExercise of option under section 245M(1) and intimation thereof 1186
44DAA toDispute Resolution Committee 1188 44DAD
44E toAdvance Rulings 1194 44FA
44GMutual Agreement Procedure 1201
44GAProcedure to deal with requests for Bilateral/Multilateral Advance Pricing Agreements 1244
45 & 46Form of Appeal to CIT(A) & Mode of Service 1246
46AProduction of additional evidence before CIT(A) 1250
47Form of appeal and memorandum of crossobjections to Appellate Tribunal 1253
I-15
CONTENTS
RULE PAGE
49 to 66Authorised representatives 1255
67 to 81Recognised provident funds 1266
82 to 97Approved superannuation funds 1290
98 to 111Approved gratuity funds 1301
111AA &Reference to Valuation Officer 1311 111AB
111B Publication and circulation of Board’s order 1315
112Search and seizure 1317
112CRelease of remaining assets 1328
112DRequisition of books of account, etc. 1332
112EForm of information under section 133B(1) 1336
113Disclosure of information respecting assessees 1337
114 &Application for allotment of a Permanent
114AAAAccount Number 1338
114AApplication for allotment of a Tax Deduction and Collection Account Number 1357
114AABClass or classes of persons to whom provisions of section 139A shall not apply 1359
114B,Quoting/Intimation of Permanent Account 114BB,Number 1361
114C & 114D
114BATransactions for which persons are required to apply for allotment of PAN 1373
114DAFurnishing of annual statement by a nonresident having liaison office in India 1374
114DBInformation or Documents to be furnished u/s 285A 1375
114E toFurnishing of Statement of Financial
114HTransaction (SFT) 1377
114-IAnnual Information Statement (AIS) 1422
115Rate of exchange for conversion into rupees of income expressed in foreign currency 1425
115ARate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for the purposes of computation of capital gains under 1st proviso to section 48 1428
117B &Recovery by TRO 1430
117C
119AProcedure to be followed in calculating interest 1432
119AAModes of payment for the purpose of section 269SU 1433
121AForm of statement to be furnished by producers of cinematograph films or persons engaged in specified activity 1434
125Electronic payment of tax 1436
126Computation of period of stay in India in certain cases 1438
127Service of notice, summons, requisition, order and other communication 1439
127AAuthentication of notices and other documents 1450
128Foreign Tax Credit 1452
129Form of application under section 270AA 1456
130Omission of certain rules and forms and savings 1457
131Electronic furnishing of forms, returns, statements, reports, orders, etc. 1459
132Application for Recomputation of Income u/s 155(18) 1462
133Calculation of net winnings from online games for the purpose of sections 115BBJ and 194BA 1464
I-17
CONTENTS
RULE PAGE
134Application under section 155(20) regarding credit of tax deduction at source 1475
SUBJECT INDEX 1477
RULES 11U & 11UA*
Determination of fair market value of property other than immovable property
11U.1 Statutory background of section 56(2)(x)
11U.1-1 Applicability xx
Category Particulars Transactions to be taken into account Tax treatment
SECTION 56(2)(x) & 56(2)(viib).
697 Rules 11U & 11UA
CategoryParticularsTransactions to be taken into account Tax treatment
x c A i iix c B i ii -
11U.1.1-1 ‘ Explanation (b) x Explanation (d) vii i ii iii iv v vi vii viii ix
Rules 11U & 11UA 698
47A
Explanation (b) x x i ii iii
PCIT Dr. Ranjan Pai pro rata Sudhir
Menon HUF Asstt. CIT
Following’ ‘ ’Jigar Jashwantlal Shah ACIT -
11U.1.1.1-1 ‘Jewellery’, defined Explanation (a) x Explanation (c) vii Explanation 14 ii a b
11U.1.1-2 Explanation (a) x Explanation (f) vii -
11U.1.1.2-1 ‘Assessable’, defined Explanation (a) x Explanation (a) vii Explanation 2
11U.1.1.2-2 SDV when date of agreement and date of registration are different
699
Rules 11U & 11UA i ii
11U.1.1.2-3 Reference to Valuation Officerr -
ii
11U.1.1-3 ‘ Explanation (a) x Explanation (b) vii
see para 11U.2
11U.1-2 Non-applicability x see para 11UAC.2
11U.2 Determination of fair market value (FMV) of specified movable properties for the purposes of section 56(2)(x) [Rule 11UA(1)]
11U.2-1 Valuation of jewellery, archaeological collections and other artistic works [Rule 11UA(1)(a) & 11UA(1)(b)]
S. No.CircumstancesFair market value (FMV)
11U.2.1-1 f
Rules 11U & 11UA
11U.2-2 Valuation of quoted shares and securities [Rule 11UA(1)(c)(a)]
S. No.Quoted shares and securities are received by way of— Trading on valuation date or not Fair market value (FMV)
--
11U.2.2-1 d -
11U.2.2-2 e f
11U.2-3 Valuation of unquoted equity shares [Rule 11UA(1)(c)(b)]
S. No. ParticularsFormula
i.e.
701 viib Rules 11U & 11UA
S. No. ParticularsFormula
FMV of unquoted equity shares
ITO Mystical Infaratech P. Ltd.
[{(A+B+C+DL)×PV}÷PE]
11U.2.3-1 b ii i ii j -
11U.2-4 Valuation of unquoted shares and securities (other than unquoted equity shares) [Rule 11UA(1)(c)(c)]
Information Technology Park Ltd. ITO
11U.3 Statutory background of section 56(2)(viib)
11U.3-1 Applicability
a i.e. b
Rules 11U & 11UA 702
c i.e.
d i.e.
e i.e. viibFlutura Business Solutions (P.) Ltd. ITO
Cimex Land and Housing (P.) Ltd. ITOMedicon Leather (P.) Ltd.
Asstt. CIT viib Milk Mantra Dairy (P.) Ltd. DCIT
11U.3.1-1 CIT Vaani Estates (P.) Ltd. viib
Explanation (a) viib
i see para 11U.4 ii i.e. iRuchi J Oil (P.) Ltd. PCIT viib viib the Finance (No. 2) Act, 2024 w.e.f. 1-4-2025
703 viib Rules 11U & 11UA -
Explanation
viib Unnati Inorganics (P.) Ltd. ITO
Explanation viibLalithaa Jewellery Mart (P.) Ltd. Asstt. CIT -
India Convention and Culture Centre (P.) Ltd. ITO
i ii Explanation (a) viib Medicon Leather (P.) Ltd. Asstt. CIT
11U.3-2 Illustrations
Sri Sakthi Textiles Ltd. DCIT
viib Mantram Commodities (P.) Ltd. ITO
viib
viib Royal Accord Realtors (P.) Ltd. DCIT
Rules 11U & 11UA 704
DCIT Rankin Infrastructure (P.) Ltd.
11U.3-3 Non-applicability viib i ii iii vide see Annex 11U.1 superseding vide
705 viib Rules 11U & 11UA DCIT
Ozone India Ltd.
Vora Financial Services P. Ltd. Asstt. CIT followed in VITP P. Ltd. DCIT
11U.3.3-1
Explanation (b) viib Explanation (c) i n ii
ii
11U.3.3-2 ‘
Explanation (b) viib Explanation (a)
11U.3.3-3
Explanation (b) viib Explanation (b) 23FB
Rules 11U & 11UA 706
w.e.f. 1-4-2025 i ii iii iv w.e.f. 1-4-2025
11U.3.3-4 Explanation (aa) viibw.e.f. 1-4-2023
11U.3.3-5 a 68 n b 91 the Finance (No. 2) Act, 2024 the Finance (No. 2) Act, 2024
Notification No. GSR 127(E), dated 19-2-2019 see, Annex 11U.2
707 viib Rules 11U & 11UA
11U.3.3.5-1 Conditions for claiming exemption by an start-up entity viib
Notification No. GSR 127(E), dated 19-2-2019 see, Annex 11U.2
