Income-tax Act, 2025 | Chapter XVII | Sections 302-355

Special Provisions Relating to Certain Persons

Representative liability, succession, firms, private-company directors, registered non-profit organisations and accreted income. The repository integrates the statutory index, operative legal snapshots, connected Rules and Forms, repealed-law mapping, applied cases and professional control sheets.

55 statutory provisionsRules 181-190Forms 104-11418 applied cases36 professional Q&AShort file paths

Use sequence

Identify jurisdiction and taxpayer status. Read the exact provision and connected Rule. Verify limitation, form, authority and evidence. Compute the consequence. Preserve service and filing records. Review remedy and transition law.

Chapter architecture

Statutory parts

Representative and special persons

Sections 302-331

Registered non-profit organisations

Sections 332-355, including 354A

Connected procedure

Rules and Forms map

Rule	Subject	Form / output
181	Common application and orders for NPO registration or approval	Forms 104-107
182	Computation of gains from commercial activities	—
183	Income applied for benefit of related persons	—
184	Option for deemed application	Form 108
185	Statement for accumulation of income	Form 109
186	Change of purpose for accumulated income	Forms 110-111
187	Books and documents for registered NPO	—
188	Audit report for registered NPO	Form 112
189	Fair market value for accreted-income computation	—
190	Donation statement and certificate	Forms 113-114

Form control: Use the form version applicable to the filing date and tax year. Verify schema, digital-signature/EVC method, attachments, prescribed authority and acknowledgement.

Section 302 - Legal representative

1961 Act: 159 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The legal representative is liable to perform the deceased person's tax obligations to the extent and in the manner prescribed, with liability generally limited by the estate and conduct rules. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Notify the department promptly, identify all legal representatives, estate assets, pending returns and proceedings, and avoid personal/estate fund mixing.

Practical example

A person or organisation faces legal representative. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 303 - Representative assessee

1961 Act: 160 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot Specified persons, including guardians, agents, trustees, executors and managers, may be treated as representative assessees for income belonging to another person. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Representative status is a collection and assessment mechanism. Identify whose income is taxed, in what capacity and with what recovery rights.

Practical example

A person or organisation faces representative assessee. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 304 - Liability of representative assessee

1961 Act: 161 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision fixes primary, representative, joint or secondary liability on the specified person. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the liability period, statutory capacity, recovery ceiling, defences, indemnity rights and supporting evidence.

Practical example

A former partner receives a recovery notice. The response maps the firm's period, partnership dates, tax demand and joint-liability provision.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 305 - Right of representative assessee to recover tax paid

1961 Act: 162 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision prescribes a special charge, liability, collection consequence or computation rule for the identified person or income. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Practical example

A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 306 - Who may be regarded as agent

1961 Act: 163 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot A person in India may be treated as agent of a non-resident where the statutory connection, business, receipt, transfer or other condition is met, after opportunity. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Agent status can create filing and payment duties without making the income the agent's own. Review contracts, authority, payments and Indian nexus.

Practical example

A person or organisation faces who may be regarded as agent. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 307 - Charge of tax where share of beneficiaries unknown

1961 Act: 164 (directional mapping; verify subject-specific old provision)

Finin2min decode

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Practical example

A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 308 - Charge of tax in case of oral trust

1961 Act: 165 (directional mapping; verify subject-specific old provision)

Finin2min decode

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Practical example

A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 309 - Method of computing a member's share in income of association of persons or body of individuals

1961 Act: 166 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision determines how specified income is classified, attributed, excluded, applied or brought to tax. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Practical example

A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 310 - Share of member of association of persons or body of individuals in income of association or body

1961 Act: 167 (directional mapping; verify subject-specific old provision)

Finin2min decode

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Practical example

A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 311 - Charge of tax where shares of members in association of persons or body of individuals unknown, etc.

1961 Act: 168 (directional mapping; verify subject-specific old provision)

Finin2min decode

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Practical example

A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 312 - Executor

1961 Act: 169 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for executor within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning executor. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 313 - Succession to business or profession otherwise than on death

1961 Act: 170 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for succession to business or profession otherwise than on death within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning succession to business or profession otherwise than on death. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 314 - Effect of order of tribunal or court in respect of business reorganisation

1961 Act: 171 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for effect of order of tribunal or court in respect of business reorganisation within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning effect of order of tribunal or court in respect of business reorganisation. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 315 - Assessment after partition of Hindu undivided family

1961 Act: 172 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot A Hindu undivided family's partition is recognised for tax only after inquiry and a statutory finding; partial partitions receive the treatment prescribed by the section. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Family-law division and tax recognition are separate. File the claim, evidence assets and members, and obtain the assessment finding.

Practical example

A person or organisation faces assessment after partition of hindu undivided family. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 316 - Shipping business of non-residents

1961 Act: 173 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for shipping business of non-residents within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning shipping business of non-residents. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 317 - Assessment of persons leaving India

1961 Act: 174 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision regulates determination or modification of taxable income, loss, tax or demand through the prescribed assessment process. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Practical example

An assessment proposes a mismatch addition. The taxpayer reconciles return, books, third-party statement and supporting vouchers before the hearing.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 318 - Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose

1961 Act: 175 (directional mapping; verify subject-specific old provision)

Finin2min decode

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Practical example

An assessment proposes a mismatch addition. The taxpayer reconciles return, books, third-party statement and supporting vouchers before the hearing.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 319 - Assessment of persons likely to transfer property to avoid tax

1961 Act: 176 (directional mapping; verify subject-specific old provision)

Finin2min decode

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Practical example

An assessment proposes a mismatch addition. The taxpayer reconciles return, books, third-party statement and supporting vouchers before the hearing.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 320 - Discontinued business

1961 Act: 177 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for discontinued business within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning discontinued business. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 321 - Association dissolved or business discontinued

1961 Act: 178 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for association dissolved or business discontinued within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning association dissolved or business discontinued. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 322 - Company in liquidation

1961 Act: 179 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for company in liquidation within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning company in liquidation. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 323 - Liability of directors of private company

1961 Act: 180 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot Directors of a private company may become jointly and severally liable for unrecovered company tax for the relevant period unless they establish the statutory defence. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Director liability is secondary but serious. Preserve governance records showing diligence, non-negligence and absence of breach of duty.

Practical example

A person or organisation faces liability of directors of private company. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 324 - Charge of tax in case of a firm

1961 Act: 181 (directional mapping; verify subject-specific old provision)

Finin2min decode

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Practical example

A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 325 - Assessment as a firm

1961 Act: 182 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot A firm is assessed as a firm only when the partnership, instrument, shares and return/document conditions are fulfilled. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Review the partnership deed before year-end changes, and reconcile partner identity, shares, remuneration and interest to the return.

Practical example

A person or organisation faces assessment as a firm. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 326 - Assessment when section 325 not complied with

1961 Act: 183 (directional mapping; verify subject-specific old provision)

Finin2min decode

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Practical example

An assessment proposes a mismatch addition. The taxpayer reconciles return, books, third-party statement and supporting vouchers before the hearing.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 327 - Change in constitution of a firm

1961 Act: 184 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for change in constitution of a firm within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning change in constitution of a firm. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 328 - Succession of one firm by another firm

1961 Act: 185 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for succession of one firm by another firm within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning succession of one firm by another firm. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 329 - Joint and several liability of partners for tax payable by firm

1961 Act: 186 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot Partners may be jointly and severally liable for tax, penalty or other sums payable by the firm for the period covered by the provision. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Partner exit does not automatically erase historic exposure. Obtain tax-clearance and indemnity information during admission or retirement.

Practical example

A person or organisation faces joint and several liability of partners for tax payable by firm. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 330 - Firm dissolved or business discontinued

1961 Act: 187 (directional mapping; verify subject-specific old provision)

Operative statutory snapshot The provision establishes the statutory treatment for firm dissolved or business discontinued within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning firm dissolved or business discontinued. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 331 - Liability of partners of limited liability partnership in liquidation

1961 Act: 188 (directional mapping; verify subject-specific old provision)

Finin2min decode

Identify the liability period, statutory capacity, recovery ceiling, defences, indemnity rights and supporting evidence.

Practical example

A former partner receives a recovery notice. The response maps the firm's period, partnership dates, tax demand and joint-liability provision.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 332 - Application for registration

1961 Act: 12A / 12AB

Operative statutory snapshot A non-profit organisation must apply through the prescribed route for registration under the applicable regime, with documents, timelines and orders governed by the Act and Rule 181. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Registration is the entry gate, not a permanent blanket exemption. Track object, activity, commencement, provisional/regular status and renewal events.

Practical example

A person or organisation faces application for registration. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 333 - Switching over of regimes

1961 Act: 11-13 regime transition provisions

Operative statutory snapshot The provision establishes the statutory treatment for switching over of regimes within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning switching over of regimes. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 334 - Tax on income of registered non-profit organisation

1961 Act: 11-13 and related tax provisions

Operative statutory snapshot A registered non-profit organisation is taxed under the special Chapter XVII-B framework, which determines regular, specified and accreted-income consequences. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Begin with registration status and income classification. Do not apply ordinary business or trust labels without the Chapter XVII-B tests.

Practical example

A person or organisation faces tax on income of registered non-profit organisation. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 335 - Regular income

1961 Act: 11

Finin2min decode

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Practical example

A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 336 - Taxable regular income

1961 Act: 11-13

Finin2min decode

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Practical example

A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 337 - Specified income

1961 Act: 13 and specified-income provisions

Finin2min decode

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Practical example

A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 338 - Income not to be included in regular income

1961 Act: 11 exclusions

Finin2min decode

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Practical example

A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 339 - Corpus donation

1961 Act: 11 corpus rules

Operative statutory snapshot The provision establishes the statutory treatment for corpus donation within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning corpus donation. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 340 - Deemed corpus donation

1961 Act: 11 deemed corpus rules

Operative statutory snapshot The provision establishes the statutory treatment for deemed corpus donation within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning deemed corpus donation. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 341 - Application of income

1961 Act: 11 application rules

Operative statutory snapshot Income is treated as applied only when it satisfies the statutory purpose, timing, payment and anti-duplication rules, with a prescribed option for specified deemed application. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Maintain project-wise evidence linking expenditure to objects, beneficiary, payment, tax deduction and year of application.

Practical example

A person or organisation faces application of income. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 342 - Accumulated income

1961 Act: 11(2)

Operative statutory snapshot Unapplied income may be accumulated only through the prescribed statement, purpose, period, investment and return conditions. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Accumulation is a controlled deferral. File Form 109, state a precise purpose, ring-fence funds and monitor the use-by date.

Practical example

A person or organisation faces accumulated income. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 343 - Deemed accumulated income

1961 Act: 11(3)

Finin2min decode

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Practical example

A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 344 - Business undertaking held as property

1961 Act: 11(4)

Operative statutory snapshot The provision establishes the statutory treatment for business undertaking held as property within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning business undertaking held as property. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 345 - Restriction on commercial activities by a registered non-profit organisation

1961 Act: 11(4A)

Operative statutory snapshot Commercial activity of a registered NPO is restricted and must remain incidental or within the statutory framework, with separate books and other conditions where applicable. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

A surplus does not alone destroy status, but purpose, nature, scale, pricing and record separation matter.

Practical example

A person or organisation faces restriction on commercial activities by a registered non-profit organisation. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 346 - Restriction on commercial activities by registered non-profit organisation, carrying out advancement of any other object of general public utility

1961 Act: 2(15) proviso and 13(8)

Operative statutory snapshot An NPO advancing another object of general public utility must satisfy the specific commercial-receipt limits and conditions for the year. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Build a receipt denominator and commercial-receipt schedule before year-end; one misclassification can affect the entire regime.

Practical example

A person or organisation faces restriction on commercial activities by registered non-profit organisation, carrying out advancement of any other object of general public utility. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 347 - Books of account

1961 Act: Rule-based books provisions

Operative statutory snapshot The provision establishes the statutory treatment for books of account within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning books of account. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 348 - Audit

1961 Act: 12A audit provisions

Operative statutory snapshot The provision establishes the statutory treatment for audit within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning audit. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 349 - Return of income

1961 Act: 139(4A) and related return rules

Operative statutory snapshot The provision governs furnishing, verification, processing or consequences of an income-tax return. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Confirm taxpayer category, correct form, due date, signatory, schedules, tax payment, loss/refund position and acknowledgement.

Practical example

A taxpayer has business income and foreign assets. A form-eligibility review avoids filing a simplified return that cannot carry the disclosures.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 350 - Permitted modes of investment

1961 Act: 11(5)

Operative statutory snapshot The provision establishes the statutory treatment for permitted modes of investment within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning permitted modes of investment. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 351 - Specified violation

1961 Act: 12AB cancellation / specified violations

Operative statutory snapshot Specified violations can trigger prescribed consequences, including registration action, after the statutory process and opportunity. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Maintain a violation register covering objects, private benefit, unrelated business, prohibited investment, reporting and other statutory triggers.

Practical example

A person or organisation faces specified violation. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 352 - Tax on accreted income

1961 Act: 115TD

Operative statutory snapshot Accreted income may be taxed at the maximum marginal rate when a registered NPO converts, merges impermissibly, or fails to transfer assets on dissolution, subject to valuation and liability rules. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Plan restructuring and dissolution before execution. Compute asset/liability FMV, permitted merger status and transfer deadlines.

Practical example

A person or organisation faces tax on accreted income. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 353 - Other violations

1961 Act: 115TE / related violations

Operative statutory snapshot The provision establishes the statutory treatment for other violations within Chapter XVII. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Practical example

A taxpayer encounters an issue concerning other violations. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Section 354 - Application for approval for purpose of section 133(1)(b)(ii)

1961 Act: 80G approval provisions

Operative statutory snapshot Eligible funds or institutions seeking approval for donation deduction must apply and comply through the prescribed route, including statements and donor certificates. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Approval and donor reporting are separate controls. Reconcile Form 113 statements and Form 114 certificates to receipts and bank records.

Practical example

A person or organisation faces application for approval for purpose of section 133(1)(b)(ii). The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 354A - Merger of registered non-profit organisation in certain cases

1961 Act: NPO merger continuity inserted in 2025 Act

Operative statutory snapshot A qualifying merger of registered non-profit organisations may receive statutory continuity where the prescribed compatibility and registration conditions are met. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Test objects, registration, assets, liabilities and successor compliance before the merger; do not assume every charitable merger is neutral.

Practical example

A person or organisation faces merger of registered non-profit organisation in certain cases. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Professional controls

Identify legal capacity and taxpayer whose income is involved.
Reconcile entity documents, books, beneficiaries or partners.
Monitor registration, liability and recovery consequences.

Section 355 - Interpretation

1961 Act: Definitions across sections 11-13 and 115TD

Operative statutory snapshot The provision defines expressions used in the connected statutory Part or Chapter. This repository is an explanatory layer. The official consolidated Act, annual Finance Act, Rules, notifications, binding judicial law and transaction facts control the final position.

Finin2min decode

Use the chapter-specific definition before the general section 2 definition, and then test whether context requires another meaning.

Practical example

A term has a special block-assessment meaning. Using the general meaning would distort the period and income computation.

Professional controls

Record the applicable person, event and tax year.
Link every conclusion to statutory conditions and primary evidence.
Track prescribed form, authority, limitation and downstream consequence.

Transition bridge

2025 Act to repealed-law map

2025 section	Subject	1961 Act source / bridge
302	Legal representative	159 (directional mapping; verify subject-specific old provision)
303	Representative assessee	160 (directional mapping; verify subject-specific old provision)
304	Liability of representative assessee	161 (directional mapping; verify subject-specific old provision)
305	Right of representative assessee to recover tax paid	162 (directional mapping; verify subject-specific old provision)
306	Who may be regarded as agent	163 (directional mapping; verify subject-specific old provision)
307	Charge of tax where share of beneficiaries unknown	164 (directional mapping; verify subject-specific old provision)
308	Charge of tax in case of oral trust	165 (directional mapping; verify subject-specific old provision)
309	Method of computing a member's share in income of association of persons or body of individuals	166 (directional mapping; verify subject-specific old provision)
310	Share of member of association of persons or body of individuals in income of association or body	167 (directional mapping; verify subject-specific old provision)
311	Charge of tax where shares of members in association of persons or body of individuals unknown, etc.	168 (directional mapping; verify subject-specific old provision)
312	Executor	169 (directional mapping; verify subject-specific old provision)
313	Succession to business or profession otherwise than on death	170 (directional mapping; verify subject-specific old provision)
314	Effect of order of tribunal or court in respect of business reorganisation	171 (directional mapping; verify subject-specific old provision)
315	Assessment after partition of Hindu undivided family	172 (directional mapping; verify subject-specific old provision)
316	Shipping business of non-residents	173 (directional mapping; verify subject-specific old provision)
317	Assessment of persons leaving India	174 (directional mapping; verify subject-specific old provision)
318	Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose	175 (directional mapping; verify subject-specific old provision)
319	Assessment of persons likely to transfer property to avoid tax	176 (directional mapping; verify subject-specific old provision)
320	Discontinued business	177 (directional mapping; verify subject-specific old provision)
321	Association dissolved or business discontinued	178 (directional mapping; verify subject-specific old provision)
322	Company in liquidation	179 (directional mapping; verify subject-specific old provision)
323	Liability of directors of private company	180 (directional mapping; verify subject-specific old provision)
324	Charge of tax in case of a firm	181 (directional mapping; verify subject-specific old provision)
325	Assessment as a firm	182 (directional mapping; verify subject-specific old provision)
326	Assessment when section 325 not complied with	183 (directional mapping; verify subject-specific old provision)
327	Change in constitution of a firm	184 (directional mapping; verify subject-specific old provision)
328	Succession of one firm by another firm	185 (directional mapping; verify subject-specific old provision)
329	Joint and several liability of partners for tax payable by firm	186 (directional mapping; verify subject-specific old provision)
330	Firm dissolved or business discontinued	187 (directional mapping; verify subject-specific old provision)
331	Liability of partners of limited liability partnership in liquidation	188 (directional mapping; verify subject-specific old provision)
332	Application for registration	12A / 12AB
333	Switching over of regimes	11-13 regime transition provisions
334	Tax on income of registered non-profit organisation	11-13 and related tax provisions
335	Regular income	11
336	Taxable regular income	11-13
337	Specified income	13 and specified-income provisions
338	Income not to be included in regular income	11 exclusions
339	Corpus donation	11 corpus rules
340	Deemed corpus donation	11 deemed corpus rules
341	Application of income	11 application rules
342	Accumulated income	11(2)
343	Deemed accumulated income	11(3)
344	Business undertaking held as property	11(4)
345	Restriction on commercial activities by a registered non-profit organisation	11(4A)
346	Restriction on commercial activities by registered non-profit organisation, carrying out advancement of any other object of general public utility	2(15) proviso and 13(8)
347	Books of account	Rule-based books provisions
348	Audit	12A audit provisions
349	Return of income	139(4A) and related return rules
350	Permitted modes of investment	11(5)
351	Specified violation	12AB cancellation / specified violations
352	Tax on accreted income	115TD
353	Other violations	115TE / related violations
354	Application for approval for purpose of section 133(1)(b)(ii)	80G approval provisions
354A	Merger of registered non-profit organisation in certain cases	NPO merger continuity inserted in 2025 Act
355	Interpretation	Definitions across sections 11-13 and 115TD

Transition discipline: The 1961 Act remains relevant to earlier tax years, saved proceedings, old approvals and judicial interpretation. Never apply a renumbering mechanically where text or context changed.

Applied learning

18 practical cases

Case 1: Return after death of proprietor

Section: 302

Facts: A person or organisation faces legal representative. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Notify the department promptly, identify all legal representatives, estate assets, pending returns and proceedings, and avoid personal/estate fund mixing.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 2: Trustee as representative assessee

Section: 303

Facts: A person or organisation faces representative assessee. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Representative status is a collection and assessment mechanism. Identify whose income is taxed, in what capacity and with what recovery rights.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 3: Recovery limited to estate

Section: 304

Facts: A former partner receives a recovery notice. The response maps the firm's period, partnership dates, tax demand and joint-liability provision.

Approach: Identify the liability period, statutory capacity, recovery ceiling, defences, indemnity rights and supporting evidence.

Control: Record the applicable person, event and tax year.; Link every conclusion to statutory conditions and primary evidence.; Track prescribed form, authority, limitation and downstream consequence.

Case 4: Representative recovery from beneficiary

Section: 305

Facts: A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Approach: Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Case 5: Indian agent of non-resident

Section: 306

Facts: A person or organisation faces who may be regarded as agent. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Agent status can create filing and payment duties without making the income the agent's own. Review contracts, authority, payments and Indian nexus.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 6: Unknown beneficiary shares

Section: 307

Facts: A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Approach: Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Case 7: Oral trust tax

Section: 308

Facts: A special liability applies to one income bucket. The computation separately identifies that bucket and prevents double taxation or duplicate credit.

Approach: Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Case 8: AOP member share

Section: 309

Facts: A receipt has both corpus and service elements. Separate documentation and accounting determine the correct treatment.

Approach: Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Case 9: Executor administration period

Section: 312

Facts: A taxpayer encounters an issue concerning executor. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Approach: Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Case 10: Business succession

Section: 313

Facts: A taxpayer encounters an issue concerning succession to business or profession otherwise than on death. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Approach: Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Case 11: Court-approved reorganisation

Section: 314

Facts: A taxpayer encounters an issue concerning effect of order of tribunal or court in respect of business reorganisation. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Approach: Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Case 12: HUF partition claim

Section: 315

Facts: A person or organisation faces assessment after partition of hindu undivided family. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Family-law division and tax recognition are separate. File the claim, evidence assets and members, and obtain the assessment finding.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 13: Non-resident shipping voyage

Section: 316

Facts: A taxpayer encounters an issue concerning shipping business of non-residents. The working paper maps the facts, statutory conditions and prescribed procedure before any position is taken.

Approach: Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Case 14: Person preparing to leave India

Section: 317

Facts: An assessment proposes a mismatch addition. The taxpayer reconciles return, books, third-party statement and supporting vouchers before the hearing.

Approach: Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Case 15: Private-company director recovery

Section: 323

Facts: A person or organisation faces liability of directors of private company. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Director liability is secondary but serious. Preserve governance records showing diligence, non-negligence and absence of breach of duty.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 16: Firm deed and assessment status

Section: 325

Facts: A person or organisation faces assessment as a firm. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Review the partnership deed before year-end changes, and reconcile partner identity, shares, remuneration and interest to the return.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 17: NPO accumulation

Section: 342

Facts: A person or organisation faces accumulated income. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Accumulation is a controlled deferral. File Form 109, state a precise purpose, ring-fence funds and monitor the use-by date.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Case 18: NPO merger

Section: 354A

Facts: A person or organisation faces merger of registered non-profit organisation in certain cases. The working paper identifies capacity, relevant income or assets, liability limits, forms and continuing conditions.

Approach: Test objects, registration, assets, liabilities and successor compliance before the merger; do not assume every charitable merger is neutral.

Control: Identify legal capacity and taxpayer whose income is involved.; Reconcile entity documents, books, beneficiaries or partners.; Monitor registration, liability and recovery consequences.

Professional Q&A

36 questions

1. What is the core purpose of section 302?

Notify the department promptly, identify all legal representatives, estate assets, pending returns and proceedings, and avoid personal/estate fund mixing.

Sections: 302

2. What is the core purpose of section 303?

Representative status is a collection and assessment mechanism. Identify whose income is taxed, in what capacity and with what recovery rights.

Sections: 303

3. What is the core purpose of section 304?

Identify the liability period, statutory capacity, recovery ceiling, defences, indemnity rights and supporting evidence.

Sections: 304

4. What is the core purpose of section 305?

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Sections: 305

5. What is the core purpose of section 306?

Agent status can create filing and payment duties without making the income the agent's own. Review contracts, authority, payments and Indian nexus.

Sections: 306

6. What is the core purpose of section 307?

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Sections: 307

7. What is the core purpose of section 308?

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Sections: 308

8. What is the core purpose of section 309?

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Sections: 309

9. What is the core purpose of section 310?

Prepare a source-to-head schedule and test character, recipient, timing, exclusions, anti-duplication and evidence.

Sections: 310

10. What is the core purpose of section 311?

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Sections: 311

11. What is the core purpose of section 312?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 312

12. What is the core purpose of section 313?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 313

13. What is the core purpose of section 314?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 314

14. What is the core purpose of section 315?

Family-law division and tax recognition are separate. File the claim, evidence assets and members, and obtain the assessment finding.

Sections: 315

15. What is the core purpose of section 316?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 316

16. What is the core purpose of section 317?

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Sections: 317

17. What is the core purpose of section 318?

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Sections: 318

18. What is the core purpose of section 319?

Build a notice-to-issue matrix covering jurisdiction, limitation, evidence, hearing, computation and final order service.

Sections: 319

19. What is the core purpose of section 320?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 320

20. What is the core purpose of section 321?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 321

21. What is the core purpose of section 322?

Identify the person, event, period, conditions, authority, evidence and consequence before applying the provision.

Sections: 322

22. What is the core purpose of section 323?

Director liability is secondary but serious. Preserve governance records showing diligence, non-negligence and absence of breach of duty.

Sections: 323

23. What is the core purpose of section 324?

Reconcile the taxpayer, tax base, rate, deductions, credits, timing, reporting and recovery provisions before computing liability.

Sections: 324

24. What is the core purpose of section 325?

Review the partnership deed before year-end changes, and reconcile partner identity, shares, remuneration and interest to the return.

Sections: 325

25. Is representative income the representative’s own income?

No. The person is assessed in a representative capacity for another person’s income.

Sections: Chapter XVII

26. Does a legal representative have unlimited personal liability?

The section and estate/conduct rules determine the ceiling; personal exposure is not assumed automatically.

Sections: Chapter XVII

27. Can a non-resident’s Indian agent be assessed without opportunity?

The statutory agent route includes the applicable procedural safeguards.

Sections: Chapter XVII

28. Is a family partition automatically recognised for tax?

No. Tax recognition requires the statutory inquiry and finding.

Sections: Chapter XVII

29. Does retirement erase partner exposure for old firm tax?

Not automatically. Joint-liability provisions and the relevant period must be reviewed.

Sections: Chapter XVII

30. What is the entry gate for the NPO regime?

Registration under section 332 through Rule 181 and the prescribed form/order route.

Sections: Chapter XVII

31. Is every donation corpus income?

No. Corpus status requires the statutory direction and compliance with the special rules.

Sections: Chapter XVII

32. Can accumulated income be used for any later purpose?

No. Purpose, period, investment and change-of-purpose rules apply.

Sections: Chapter XVII

33. Are commercial receipts always fatal for an NPO?

No, but sections 345-346 impose incidence, purpose, books and quantitative tests.

Sections: Chapter XVII

34. What form supports deemed application?

Form 108 under Rule 184.

Sections: Chapter XVII

35. What form supports accumulation?

Form 109 under Rule 185.

Sections: Chapter XVII

36. What is accreted-income tax designed to protect?

The public-benefit asset base when an NPO converts, merges impermissibly or fails asset-transfer requirements.

Sections: Chapter XVII

Execution controls

Chapter XVII working-paper checklist

Law and jurisdiction

Correct tax year and governing Act
Section, Rule, Form and notification
Authority, jurisdiction, sanction and service
Limitation and statutory exclusions

Facts and evidence

Books, return, third-party data and contracts
Identity and legal-capacity records
Issue-wise evidence index and reconciliation
Electronic filing and hearing audit trail

Computation

Income or liability base
Tax, interest, fee, penalty and credits
Consequential years and related persons
Demand and recovery reconciliation

Remedy and governance

Response, rectification, appeal, revision or stay
Board and management reporting
Professional opinion for high-risk positions
Change log for later law or fact developments

Primary-source register

Official law layer

Income-tax Act, 2025 as amended by Finance Act, 2026
https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf

Income-tax Rules, 2026 - G.S.R. 198(E), 20 March 2026
https://www.incometaxindia.gov.in/documents/d/guest/en-notified-it-rules-2026-20-03-2026-pdf

Income-tax Act, 1961 official repository
https://www.incometaxindia.gov.in/income-tax-act

Reliance notice: This material is for education, research and professional orientation. It is not a substitute for the official Gazette, live portal schema, fact-specific advice or binding judicial law.