Section 294a of Income Tax Act "Power to make exemption, etc., in relation to certain Union territories"
294A. If the Central Government considers it necessary or
expedient so to do for avoiding any hardship or anomaly or
removing any difficulty that may arise as a result of the
application of this Act to the Union territories of Dadra
and Nagar Haveli, Goa, Daman and Diu, and Pondicherry, or in
the case of the Union territory of Pondicherry, for
implementing any provision of the Treaty of Cession
concluded between France and India on the 28th day of May,
1956, that Government may, by general or special order, make
an exemption, reduction in rate or other modification in
respect of income-tax or super-tax in favour of any assessee
or class of assessees or in regard to the whole or any part
of the income of any assessee or class of assessees :
Provided that the power conferred by this section shall not
be exercisable after the 31st day of March, 1967, except for
the purpose of rescinding an exemption, reduction or
modification already made.
295. (1) The Board may, subject to the control of the
Central Government, by notification in the Gazette of India,
make rules for the whole or any part of India for carrying
out the purposes of this Act.
(2) In particular, and without prejudice to the generality
of the foregoing power, such rules may provide for all or
any of the following matters :-
(a) the ascertainment and determination of any class of
income;
(b) the manner in which and the procedure by which the
income shall be arrived at in the case of-
(i) income derived in part from agriculture and in part from
business;
(ii) persons residing outside India;
Following sub-clause (iia) shall be inserted after
sub-clause (ii) of clause (b) of sub-section (2) of section
295 by the Finance Act, 2020, w.e.f. 1-4-2021 :
(iia) operations carried out in India by a non-resident;
Following sub-clause (iib) shall be inserted after
sub-clause (iia) [as so inserted by the Finance Act, 2020,
w.e.f. 1-4-2021] of clause (b) of sub-section (2) of section
295 by the Finance Act, 2020, w.e.f. 1-4-2022 :
(iib) transactions or activities of a non-resident;
(iii) an individual who is liable to be assessed under the
provisions of sub-section (2) of section 64;
(c) the determination of the value of any perquisite
chargeable to tax under this Act in such manner and on such
basis as appears to the Board to be proper and reasonable;
(d) the percentage on the written down value which may be
allowed as depreciation in respect of buildings, machinery,
plant or furniture;
(dd) the extent to which, and the conditions subject to
which, any expenditure referred to in sub-section (3) of
section 37 may be allowed;
(dda) the matters specified in sub-sections (2) and (3) of
section 44AA;
(e) the conditions or limitations subject to which any
payment of rent made by an assessee shall be deducted under
section 80GG;
(ee) the matters specified in Chapter X-A;
(eea) the cases, the nature and value of assets, the limits
and heads of expenditure and the outgoings, which are
required to be prescribed under sub-section (6) of section
139;
(eeb) the time within which any person may apply for the
allotment of a permanent account number, the form and the
manner in which such application may be made and the
particulars which such application shall contain and the
transactions with respect to which permanent account numbers
shall be quoted on documents relating to such transactions
under section 139A;
(eeba) the documents, statements, receipts, certificates or
audited reports which may not be furnished along with the
return but shall be produced before the Assessing Officer on
demand under section 139C;
(eebb) the class or classes of persons who shall be required
to furnish the return of income in electronic form; the form
and the manner of furnishing the said return in electronic
form; documents, statements, receipts, certificates or
reports which shall not be furnished with the return in
electronic form and the computer resource or electronic
record to which such return may be transmitted under section
139D;
(eec) the form of the report of audit and the particulars
which such report shall contain under sub-section (2A) of
section 142;
(eed) remuneration of Chairperson and members of the
Approving Panel under sub-section (18) and procedure and
manner for constitution of, functioning and disposal of
references by, the Approving Panel under sub-section (21) of
section 144BA;
(f) the manner in which and the period to which any such
income as is referred to in section 180 may be allocated;
(fa) the form and manner in which the information relating
to payment of any sum may be furnished under sub-section (6)
of section 195;
(g) the authority to be prescribed for any of the purposes
of this Act;
(h) the procedure for giving effect to the terms of any
agreement for the granting of relief in respect of double
taxation or for the avoidance of double taxation which may
be entered into by the Central Government under this Act;
(ha) the procedure for granting of relief or deduction, as
the case may be, of any income-tax paid in any country or
specified territory outside India, under section 90 or
section 90A or section 91, against the income-tax payable
under this Act;
(i) the form and manner in which any application, claim,
return or information may be made or furnished and the fees
that may be levied in respect of any application or claim;
(j) the manner in which any document required to be filed
under this Act may be verified;
(k) the procedure to be followed on applications for
refunds;
(kk) the procedure to be followed in calculating interest
payable by assessees or interest payable by Government to
assessees under any provision of this Act, including the
rounding off of the period for which such interest is to be
calculated in cases where such period includes a fraction of
a month, and specifying the circumstances in which and the
extent to which petty amounts of interest payable by
assessees may be ignored;
(l) the regulation of any matter for which provision is made
in section 230;
(m) the form and manner in which any appeal or
cross-objection may be filed under this Act, the fee payable
in respect thereof and the manner in which intimation of any
such order as is referred to in clause (c) of sub-section
(2) of section 249 may be served;
(mm) the circumstances in which, the conditions subject to
which and the manner in which, the Commissioner (Appeals)
may permit an appellant to produce evidence which he did not
produce or which he was not allowed to produce before the
Assessing Officer;
(mma) the form in which the statement under section 285B
shall be delivered to the Assessing Officer;
(n) the maintenance of a register of persons other than
legal practitioners or accountants as defined in sub-section
(2) of section 288 practising before income-tax authorities
and for the constitution of and the procedure to be followed
by the authority referred to in sub-section (5) of that
section;
(o) the issue of certificate verifying the payment of tax by
assessees;
(p) any other matter which by this Act is to be, or may be,
prescribed.
(3) In cases coming under clause (b) of sub-section (2),
where the income liable to tax cannot be definitely
ascertained, or can be ascertained only with an amount of
trouble and expense to the assessee which in the opinion of
the Board is unreasonable, the rules made under this section
may-
(a) prescribe methods by which an estimate of such income
may be made; and
(b) in cases coming under sub-clause (i) of clause (b) of
sub-section (2) specify the proportion of the income which
shall be deemed to be income liable to tax,
and an assessment based on such estimate or proportion shall
be deemed to be duly made in accordance with the provisions
of this Act.
(4) The power to make rules conferred by this section shall
include the power to give retrospective effect, from a date
not earlier than the date of commencement of this Act, to
the rules or any of them and, unless the contrary is
permitted (whether expressly or by necessary implication),
no retrospective effect shall be given to any rule so as to
prejudicially affect the interests of assessees.