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Taxation Central Ministry of Finance Income Tax Act, 1961

Press Release on Operationalization of the Board for Advance Rulings and Handbook of the Board for Advance Rulings

19-Aug-2023 | Press Release

Central Board of Direct Taxes (CBDT) has issued a Press release regarding the operationalization of the Boards for Advance Rulings.

The key highlights of the press release include:

1. Introduction of E-Advance Ruling Scheme: The E-Advance Ruling Scheme was introduced through Notification No. 07 of 2022. This scheme aims to streamline the process of obtaining advance rulings by minimizing physical interactions and maximizing the use of digital platforms, thereby enhancing efficiency and transparency.

2. Functioning of the Boards for Advance Rulings: The Boards for Advance Rulings have been operationalized in Delhi and Mumbai. These boards function primarily through email-based procedures and conduct hearings through video conferencing.

3. Benefits for Different Taxpayers: The advance ruling mechanism benefits various categories of taxpayers:
a. Non-resident investors can obtain clarity on their income tax liability before making investments in India.
b. Resident entities can seek rulings on the taxability of transactions, helping them avoid prolonged litigation.
c. Public Sector Undertakings can get advance rulings on questions of facts or law pending before income-tax authorities or Appellate Tribunals.

3. Release of Handbook: To assist taxpayers in understanding the procedure for seeking advance rulings, the Chairman of CBDT released a Handbook of the Board for Advance Rulings on August 18, 2023. This handbook provides general guidance on the advance rulings process and can be accessed on the official Income Tax India website.

4. Government Priorities: The Chairman of CBDT emphasized that the establishment of mechanisms like the Board for Advance Rulings aligns with the government's priorities of preventing disputes and promptly resolving disputes in the tax domain.

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