Menu

The Direct Taxes Code, 2010

Arrangement of Clauses

Chapter I

Preliminary

Section No.	Subject / Particulars
Section 1.	Short title, extent and commencement
Part-A • Chapter-II • Basis of Charge
Section 2.	Liability to pay, and charge of, income-tax.
Section 3.	Scope of total income.
Section 4.	Residence in India.
Section 5.	Income deemed to accrue in India.
Section 6.	Income deemed to be received in the financial year.
Section 7.	Dividend income.
Section 8.	Total income to include income of any other person.
Section 9.	Income of individual to include income of spouse, minor child and others.
Section 10.	Income not included in the total income.
Section 11.	Persons, entity or funds not liable to income-tax.
Chapter-III • Computation of Total Income • I.-General
Section 12.	Computation of total income.
Section 13.	Classification of sources of income.
Section 14.	Computation of income from ordinary sources.
Section 15.	Computation of income from special sources.
Section 16.	Apportionment of income between spouses governed by Portuguese Civil Code.
Section 17.	Avoidance of double taxation.
Section 18.	Expenditure not to be allowed as deduction.
Section 19.	Amount not deductible where tax is not deducted at source.
II Heads of Income • A Income from Employment
Section 20.	Income from employment.
Section 21.	Computation of income from employment.
Section 22.	Scope of gross salary.
Section 23.	Deductions from gross salary.
B. Income from house property
Section 24.	Income from house property.
Section 25.	Computation of income from house property.
Section 26.	Scope of gross rent.
Section 27.	Deductions from gross rent.
Section 28.	Provision for advance rent received.
Section 29.	Provision for arrears of rent received.
C. Income from business
Section 30.	Income from business.
Section 31.	Business when treated distinct and separate.
Section 32.	Computation of income from business.
Section 33.	Gross earnings.
Section 34.	Determination of business expenditure.
Section 35.	Determination of operating expenditure.
Section 36.	Determination of finance charges.
Section 37.	Determination of capital allowances.
Section 38.	Determination of depreciation.
Section 39.	Determination of initial depreciation.
Section 40.	Determination of terminal allowance.
Section 41.	Deduction for scientific research and development allowance.
Section 42.	Computation of profit on transfer of a business capital asset.
Section 43.	Special provisions relating to business reorganization.
Section 44.	Meaning of actual cost.
Section 45.	Meaning of written down value and adjusted value of assets.
D. Capital Gains
Section 46.	Capital gains.
Section 47.	Income from certain transfers not to be treated as capital gains.
Section 48.	Financial year of taxability.
Section 49.	Computation of income from transfer of any investment asset.
Section 50.	Full value of consideration.
Section 51.	Deduction for cost of acquisition.
Section 52.	Indexed cost of acquisition or improvement.
Section 53.	Cost of acquisition of an investment asset.
Section 54.	Cost of improvement of an investment asset.
Section 55.	Relief for rollover of investment asset.
E. Income from residuary sources
Section 56.	Income from residuary sources
Section 57.	Computation of income from residuary sources
Section 58.	Gross residuary income
Section 59.	Deductions from gross residuary income
III Aggregation of income
Section 60.	Aggregation of income under a head of income.
Section 61.	Aggregation of income from ordinary sources.
Section 62.	Aggregation of income from special sources.
Section 63.	Determination of total income.
Section 64.	Special provisions relating to business reorganization or conversion of a company into a limited liability partnership.
Section 65.	Aggregation of losses in case of change in constitution of unincorporated body.
Section 66.	Aggregation of losses in the case of certain companies.
Section 67.	Aggregation of loss not to be allowed in the case of filing of return after due date.
IV. Tax Incentives
Section 68.	Deductions from gross total income from ordinary sources.
Section 69.	Deductions for savings
Section 70.	Deduction for life insurance.
Section 71.	Deduction for health insurance.
Section 72.	Deduction for education of children.
Section 73.	Limit on deductions under sections 70, 71 and 72.
Section 74.	Deduction of interest on loan taken for house property.
Section 75.	Deduction of interest on loan taken for higher education.
Section 76.	Deduction for medical treatment.
Section 77.	Deduction to a person with disability.
Section 78.	Deduction for medical treatment and maintenance of a dependent person with disability.
Section 79.	Deduction of contribution or donations to certain funds or non-profit organizations.
Section 80.	Deduction for rent paid.
Section 81.	Deduction for political contributions.
Section 82.	Deduction of income of Investor Protection Fund.
Section 83.	Deduction of royalty income of authors.
Section 84.	Deduction of royalty on patents.
Section 85.	Deduction of income of co-operative society from banking activities.
Section 86.	Deduction of income of primary co-operative societies.
V. Maintenance of accounts and other related matters
Section 87.	Maintenance of accounts
Section 88.	Audit of accounts and reporting of international transaction.
Section 89.	Method of accounting
Chapter IV • Special Provisions relating to Computation of • Total Income of Non-Profit Organizations
Section 90.	Applicability of this Chapter.
Section 91.	Total income of a non-profit organization.
Section 92.	Computation of total income of a non-profit organization.
Section 93.	Gross receipts of a non-profit organization.
Section 94.	Outgoings of a non-profit organization.
Section 95.	Modes of investment.
Section 96.	Deemed income of a non-profit organization.
Section 97.	Use or application of funds or assets for the benefit of interested person.
Section 98.	Registration of a non-profit organization.
Section 99.	Maintenance of accounts and tax audit.
Section 100.	Anonymous donations.
Section 101.	Consequences of conversion of a non-profit organization.
Section 102.	Provisions of this Chapter not to apply in certain cases.
Section 103.	Interpretations in this chapter.
Chapter V • Computation of Book Profit
Section 104.	Computation of book profit.
Section 105.	Preparation of profit and loss account for computing book profit.
Section 106.	Tax credit for tax paid on book profit.
Section 107.	Application of other provisions of this Code.
Chapter VI • Provisions relating to Tax on Income received from Venture Capital Company and Venture Capital Fund
Section 108.	Tax on income received from venture capital company and venture capital fund.
Part-B • Dividend Distribution Tax • Chapter-VII • Charge of Branch Profits Tax
Section 109.	Tax on Distributed Income
Part-C • Tax on Distributed Income
Section 110.	Tax on income distributed by mutual fund or life insurer.
Part-D • Branch Profits Tax • Chapter IX • Charge of Branch Profits Tax
Section 111.	Tax on branch profits.
Part-E • Wealth Tax • Chapter X • Charge of Wealth Tax
Section 112.	Tax on net wealth.
Section 113.	Computation of net wealth.
Section 114.	Net wealth to include certain assets.
Part-F • Prevention of Abuse of the Code • Chapter XI • Special Provisions relating to Avoidance of Tax
Section 115.	Disallowance of expenditure having regard to fair market value.
Section 116.	Determination of income from international transaction having regard to arm's length price.
Section 117.	Determination of arm's length price.
Section 118.	Advance pricing agreement.
Section 119.	Avoidance of income-tax by transactions resulting in transfer of income to non-residents.
Section 120.	Avoidance of tax by sale and buy-back transaction in security.
Section 121.	Avoidance of tax by buy and sale-back transaction in security.
Section 122.	Broken period income accruing from a debt instrument.
Section 123.	General anti-avoidance rule.
Section 124.	Interpretations in this chapter.
Section 125.	Presumption of purpose.
Part-G • Chapter-XII • Tax Administration and Procedure • A.-Tax administration
Section 126.	Income-tax authorities.
Section 127.	Appointment and control of income-tax authorities.
Section 128.	Power of higher authorities.
Section 129.	Powers of Board to issue instructions.
Section 130.	Jurisdiction of income-tax authorities.
Section 131.	Jurisdiction of Assessing Officers.
Section 132.	Power to transfer cases.
Section 133.	Change of incumbent.
Section 134.	Powers regarding discovery and production of evidence.
Section 135.	Search and seizure.
Section 136.	Power to requisition material taken into custody.
Section 137.	Retention and release of books of account or documents seized or requisitioned.
Section 138.	Delivery of material belonging to other persons.
Section 139.	Retention and application of seized or requisitioned assets.
Section 140.	Power to call for information.
Section 141.	Power of survey.
Section 142.	Power to disclose information in respect of assessee.
Section 143.	Proceedings before income-tax authorities to be judicial proceedings.
B.-Assessment procedure
Section 144.	Self-reporting of tax bases.
Section 145.	Tax return preparer.
Section 146.	Issue of notice to furnish return.
Section 147.	Self-assessment tax.
Section 148.	Acknowledgment of return.
Section 149.	Processing of return.
Section 150.	Notice for inquiry before assessment.
Section 151.	Special audit.
Section 152.	Determination of value of assets.
Section 153.	Determination of arm's length price.
Section 154.	Determination of an impermissible avoidance agreement and consequences thereof.
Section 155.	Assessment.
Section 156.	Best judgment assessment.
Section 157.	Directions by Joint Commissioner for assessment.
Section 158.	Direction by Dispute Resolution Panel for assessment.
Section 159.	Reopening of assessment.
Section 160.	Approval for search assessment.
Section 161.	Rectification of mistake.
Section 162.	Notice of demand.
Section 163.	Time limits for completion of assessment or re-assessments.
C.-Procedure for Assessment in Special Cases
Section 164.	Representative assessee.
Section 165.	Rights and obligations of a representative assessee.
Section 166.	Direct assessment or recovery not barred.
Section 167.	Remedy against property in case of representative assessee.
Section 168.	Assessment upon business reorganization.
Section 169.	Assessment after partition of a Hindu undivided family.
Section 170.	Assessment of non-resident in respect of occasional shipping business.
Section 171.	Assessment of persons leaving India.
Section 172.	Assessment of an unincorporated body formed for a particular event or purpose.
Section 173.	Assessment of persons likely to transfer property to avoid tax.
Section 174.	Discontinued business.
Section 175.	Assessment of unincorporated body in case of change in its constitution.
Section 176.	Assessment on retirement or death of participant.
Section 177.	Assessment of a deductor or collector.
D.-Appeals and revision
Section 178.	Appeal to Commissioner (Appeals).
Section 179.	Form of appeal and limitation.
Section 180.	Procedure in appeal
Section 181.	Powers of Commissioner (Appeals).
Section 182.	Appellate Tribunal.
Section 183.	Appeals to Appellate Tribunal.
Section 184.	Stay of demand by Appellate Tribunal.
Section 185.	Orders of Appellate Tribunal.
Section 186.	Constitution of Benches and procedure of Appellate Tribunal.
Section 187.	Appeal to High Court.
Section 188.	Case before High Court to be heard by not less than two Judges.
Section 189.	Appeal to Supreme Court.
Section 190.	Hearing before Supreme Court.
Section 191.	Revision of orders prejudicial to revenue.
Section 192.	Revision of other orders.
Chapter-XIII • Collection and Recovery • A.-Deduction of Tax at source
Section 193.	Deduction or collection of tax at source and advance payment.
Section 194.	Direct payment.
Section 195.	Liability to deduct tax at source.
Section 196.	Payment of income and deduction of tax.
Section 197.	Certificate for lower or no deduction of tax.
Section 198.	Obligation of deductor.
Section 199.	Reporting of payments without deduction of tax.
Section 200.	No deduction of tax in certain cases.
Section 201.	Credit for tax deducted.
B.-Collection at source
Section 202.	Tax collection at source
Section 203.	Credit for tax collected.
Section 204.	Interpretations under Sub-Chapters A and B.
C.-Advance tax
Section 205.	Liability to pay advance tax.
D Tax Credit for Relief in respect of Arrears or Advance Receipts
Section 206.	Tax relief for arrears of advance receipts.
E Foreign Tax Credit
Section 207.	Foreign tax credit.
F Payment of Wealth Tax
Section 208.	Payment of wealth-tax.
G Interest Payable to the Central Government
Section 209.	Interest for default in furnishing return of tax bases.
Section 210.	Interest for default in payment of advance income-tax.
Section 211.	Interest for deferment of advance income-tax.
Section 212.	Interest on excess refund.
Section 213.	Interest payable on demand raised.
Section 214.	Interest for failure to deduct or collect or pay tax.
H Refunds
Section 215.	Refunds.
Section 216.	Interest on refund.
Section 217.	Person entitled to claim refund in certain special cases.
I Recovery
Section 218.	Recovery by Assessing Officer.
Section 219.	Recovery by Tax Recovery Officer.
Section 220.	Modes of recovery.
Section 221.	Tax Recovery Officer by whom recovery is to be effected.
Section 222.	Recovery of tax arrear in respect of non-resident from his assets.
Section 223.	Recovery in case of a company in liquidation.
Section 224.	Liability of manager of a company.
Section 225.	Joint and several liability of participants.
Section 226.	Recovery through State Government.
Section 227.	Recovery of tax in pursuance of agreements with foreign countries or specified territory.
Section 228.	Tax clearance certificate in certain cases.
Section 229.	Recovery by suit or under other law not affected.
Chapter-XIV • Penalties
Section 230.	Penalty for under reporting of tax bases.
Section 231.	Penalty where search has been initiated.
Section 232.	Penalty for other defaults.
Section 233.	Procedure.
Section 234.	Bar of limitation for imposing penalty.
Chapter-XV • Prosecution
Section 235.	Chapter not in derogation of any other law.
Section 236.	Contravention of any restraint order.
Section 237.	Failure to comply with the provisions of clause (d) of sub-section (2) of section 135.
Section 238.	Removal, concealment, transfer or delivery of property to thwart tax recovery.
Section 239.	Failure to comply with provisions of sub-sections (1) and (3) of section 223.
Section 240.	Failure to pay tax deducted or collected at source or to pay dividend or income distribution tax.
Section 241.	Wilful attempt to evade tax.
Section 242.	Failure to furnish returns of tax bases.
Section 243.	Failure to furnish statements and reports.
Section 244.	Failure to comply with direction under this Code.
Section 245.	False statement in verification.
Section 246.	Falsification of books of account or documents.
Section 247.	Abetment of false return.
Section 248.	Offences by companies, etc.
Section 249.	Proof of entries in records or documents.
Section 250.	Presumption as to assets and books of account in certain cases.
Section 251.	Presumption as to culpable mental state.
Section 252.	Prosecution to be instance of Chief Commissioner or Commissioner.
Section 253.	Punishment for second and subsequent offences.
Section 254.	Offences to be non-cognizable.
Section 255.	Disclosure of information by public servants.
Chapter-XVI • Advance Ruling and Dispute Resolution
Section 256.	Scope of ruling and dispute resolution.
Section 257.	Authority for Advance Rulings and Dispute Resolution.
Section 258.	Procedure for advance ruling.
Section 259.	Income-tax authority or Appellate Tribunal not to proceed in certain cases.
Section 260.	Applicability of advance ruling.
Section 261.	Advance Ruling to be void in certain circumstances.
Section 262.	Procedure for dispute resolution.
Section 263.	Stay of demand by the Authority.
Section 264.	Power to rectify a mistake.
Section 265.	Powers of Authority.
Section 266.	Procedure of Authority.
Section 267.	Interpretations in this Chapter.
Chapter-XVII • Settlement of Cases
Section 268.	Income-tax Settlement Commission.
Section 269.	Jurisdiction and powers of Settlement Commission.
Section 270.	Vice-Chairperson to act as Chairperson.
Section 271.	Power of Chairperson to transfer cases from one Bench to another.
Section 272.	Decision to be by majority.
Section 273.	Application for settlement of cases.
Section 274.	Additional amount of income-tax.
Section 275.	Admission of application.
Section 276.	Further inquiry into the case.
Section 277.	Order of settlement.
Section 278.	Payment of tax on settlement.
Section 279.	Power of Settlement Commission to order provisional attachment to protect revenue.
Section 280.	Revival of proceedings before Assessing Officer.
Section 281.	Powers of Settlement Commission after admission.
Section 282.	Inspection and furnishing of reports.
Section 283.	Power of Settlement Commission to grant immunity.
Section 284.	Abatement of proceedings before Settlement Commission.
Section 285.	Credit for tax paid in case of abatement of proceedings.
Section 286.	Recovery of sums due under order of settlement.
Section 287.	Order of settlement to be conclusive.
Section 288.	Bar on subsequent application.
Section 289.	Proceedings to be judicial proceedings.
Section 290.	Interpretations in this Chapter.
Part H GENERAL • Chapter-XVIII • Settlement of Cases
Section 291.	Agreement with foreign countries or specified territory.
Section 292.	Permanent account number.
Section 293.	Tax account number.
Section 294.	Mode of acceptance or repayment of certain loans or deposits.
Section 295.	Obligation to furnish annual information return.
Section 296.	Certain transfers to be void.
Section 297.	Provisional attachment to protect revenue in certain cases.
Section 298.	Service of notice generally.
Section 299.	Authentications of notices and other documents.
Section 300.	Notice deemed to be valid in certain circumstances.
Section 301.	Service of notice when family is disrupted or unincorporated body is dissolved.
Section 302.	Publication of information respecting assessees in certain cases.
Section 303.	Appearance by registered valuer in certain matters.
Section 304.	Appearance by authorized representative.
Section 305.	Rounding off of tax bases and tax.
Section 306.	Indemnity.
Section 307.	Power to tender immunity from prosecution.
Section 308.	Cognizance of offences.
Section 309.	Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply.
Section 310.	Return of tax bases not to be invalid on certain grounds.
Section 311.	Presumption as to material fund.
Section 312.	Bar of suits in civil courts.
Section 313.	Power to resind.
Part I • Interpretations and Miscellaneous Provisions • Chapter-XIX • Interpretations and Constructions
Section 314.	Interpretations in this Code.
Section 315.	Construction.
Chapter-XX • Miscellaneous
Section 316.	Power to make rules.
Section 317.	Laying of rules, schemes and notifications before Parliament.
Section 318.	Repeal and savings.
Section 319.	Power to remove difficulties.
Arrangement of Schedules
The 1st Schedule.	Rates of Income-tax
The 2nd Schedule.	Rates of other taxes
The 3rd Schedule.	Rates for deduction of tax at source
The 4th Schedule.	Rate for deduction of tax at source in case of non-resident deductee
The 5th Schedule.	Procedure for recovery of tax
The 6th Schedule.	Income not included in the total income
The 7th Schedule.	Persons, entity or funds not liable to Income-tax
The 8th Schedule.	Computation of profits of the insurance business
The 9th Schedule.	Computation of Income from Special Sources
The 10th Schedule.	Computation of Profits of Business of Operating a Qualifying Ship
The 11th Schedule.	Computation of Profits of the Business of Mineral Oil or Natural Gas
The 12th Schedule.	Computation of Profits of the Business of Developing of a Special Economic Zone, Manufacture or Production of Article or Things or Providing of any Service by a Unit Established in a Special Economic Zone
The 13th Schedule.	Computation of profits of a Specified business
The 14th Schedule.	Determination of income on a presumptive basis
The 15th Schedule.	Depreciation
The 16th Schedule.	Deduction for contributions / donations
The 17th Schedule.	Determination of cost of acquisition in certain cases
The 18th Schedule.	Minerals and group of associated minerals
The 19th Schedule.	Approved PF, Gratuity and Superannuation Funds
The 20th Schedule.	Computation of Income Attributable to a controlled Foreign Company
The 21st Schedule.	Orders Appealable before Commissioner (Appeals)
The 22nd Schedule.	Deferred Revenue Expenditure Allowance

Disclaimer :

The Direct Taxes Code Bill 2010 has been compiled in HTML format by this site to facilitate easy Section-wise / Schedule-wise browsing. All possible care has been taken to compile the code diligently. However, this site will not be responsible for any error or omission in compiling the code. The users may use the information at their own risk and responsibility. In case of any doubt or clarifications, the users may Click Here to download the original PDF version of the Code.