Interpretation
[Section-380 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
In this Chapter,—
- (a) “advance ruling” means—
- (i) a determination by the Board for Advance Rulings in relation to the tax liability arising out of a transaction which has been undertaken or is proposed to be undertaken by a non-resident applicant; or
- (ii) a determination by the Board for Advance Rulings in relation to the tax liability of a non-resident arising out of a transaction which has been undertaken or is proposed to be undertaken by a resident applicant with such non-resident; or
- (iii) a determination by the Board for Advance Rulings in relation to the tax liability of a resident applicant, arising out of a transaction which has been undertaken or is proposed to be undertaken by such applicant; and such determination shall include the determination of any question of law or of fact specified in the application;
- (iv) a determination or decision by the Board for Advance Rulings in respect of an issue relating to computation of total income which is pending before any income-tax authority or the Appellate Tribunal and such determination or decision shall include the determination or decision of any question of law or of fact relating to such computation of total income specified in the application;
- (v) a determination or decision by the Board for Advance Rulings whether an arrangement, which is proposed to be undertaken by any person being a resident or a non-resident, is an impermissible avoidance arrangement as referred to in Chapter XI or not;
- (b) “applicant” means any person who—
- (i) is a non-resident referred to in clause (a)(i); or
- (ii) is a resident referred to in clause (a)(ii); or
- (iii) is a resident referred to in clause (a)(iii) falling within any such class or category of persons as the Central Government may, by notification, specify; or
- (iv) is a resident falling within any such class or category of persons as the Central Government may, by notification, specify in this behalf; or
- (v) is referred to in clause (a)(v),
- and makes an application under section 383(1);
- (c) “application” means an application made to the Board for Advance Rulings under section 383(1);
- (d) “Board for Advance Rulings” means the Board for Advance Rulings constituted by the Central Government under section 381;
- (e) “Member” means a Member of the Board for Advance Rulings.
FAQs on Section 380 of Income Tax Act 2025
What is meant by “advance ruling” under Section 380 of the Income Tax Act, 2025?
“Advance ruling” refers to determinations or decisions made by the Board for Advance Rulings regarding tax liabilities of applicants in specified cases, including non-residents, residents transacting with non-residents, and residents involved in certain transactions, as well as rulings on impermissible avoidance arrangements or issues pending before income-tax authorities or the Appellate Tribunal.
Who qualifies as an “applicant” under Section 380?
An applicant can be a non-resident or a resident person falling under certain categories specified by the Central Government, who seeks an advance ruling and files an application under section 383(1).
What constitutes an “application” under Section 380?
An application is the formal request made to the Board for Advance Rulings under section 383(1) for obtaining an advance ruling.
What is the “Board for Advance Rulings”?
The Board for Advance Rulings is a body constituted by the Central Government under section 381 to provide advance rulings on specified tax matters.
Who is a “Member” as per Section 380?
A Member refers to an individual who is part of the Board for Advance Rulings.
Can residents apply for advance rulings?
Yes, residents can apply for advance rulings if they fall under the categories specified in clause (a)(ii), (a)(iii), or (a)(v), and provided they meet conditions notified by the Central Government.
Is a determination under advance ruling limited only to non-residents?
No, while initially applicable to non-residents, the provision also allows determinations for residents involved in certain transactions or falling under specific categories.
Can advance rulings involve questions of law or fact?
Yes, the determination under an advance ruling can include both questions of law and fact as specified in the application.
Are advance rulings applicable to pending cases?
Yes, advance rulings may be sought on issues related to the computation of total income that are pending before income-tax authorities or the Appellate Tribunal.
What kind of arrangements can the Board determine under clause (a)(v)?
The Board can determine whether a proposed arrangement by any person (resident or non-resident) constitutes an impermissible avoidance arrangement as referred to in Chapter XI.
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