CBDT Releases’ Handbook On Advance Rulings’ to Guide/Assist Taxpayers Seeking Advance Rulings

Press Release, dated 19-08-2023

In September 2021, the Central Board of Direct Taxes (CBDT) introduced E-advance Ruling Scheme in order to to make the entire process of advance rulings with a minimal interface and impart greater efficiency, transparency, and accountability. The Boards started functioning through e-mail-based procedures and conducting hearing through video conferencing.

A non-resident investor can obtain certainty on its liability towards income tax even before undertaking the investment in India. Further, even a resident entity can obtain a Ruling on the taxability of a transaction and avoid long-drawn litigation, as the Scheme is also available to a resident taxpayer seeking an advance ruling concerning its tax liability arising out of one or more transactions, valuing Rs.100 crore or more in total. Public Sector Undertakings can take advantage of getting advance rulings on questions of facts or law pending before any income-tax authority or Appellate Tribunal.

To provide general guidance and assistance to the taxpayers on the procedure to seek Advance Rulings, the CBDT has released a Handbook of the Board for Advance Rulings.

The information contained in the handbook is intended for general guidance only. It is not a substitute for the relevant Acts, Rules, circulars, or orders for which a reference must invariably be made to the authorized text.

Click Here To Read The Full Press Release