Section 245Q of Income Tax Act for AY 2023-24

Section 245Q of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Application for advance ruling.

Amended and updated notes on section 245Q of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Application for advance ruling.

Chapter XIXB (Sections 245N to 245V) of the Income Tax Act 1961 deals with the provisions related to Advance rulings . Section 245Q of IT Act 1961 provides for Application for advance ruling.

Recently, we have discussed in detail section 245P (Vacancies, etc., not to invalidate proceedings) of IT Act 1961. Today, we learn the provisions of section 245Q of Income-tax Act 1961. The amended provision of section 245Q is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 245Q of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-245Q: Application for advance ruling

Section 245Q(1) of Income Tax Act

An applicant desirous of obtaining an advance ruling under this Chapter or under Chapter V of the Customs Act, 1962 (52 of 1962) or under Chapter IIIA of the Central Excise Act, 1944 (1 of 1944) or under Chapter VA of the Finance Act, 1994 (32 of 1994) may make an application in such form and in such manner as may be prescribed, stating the question on which the advance ruling is sought.

[Sub-section(1) of section 245Q amended (omitted) by the Finance Act 2021 w.e.f. such date CG notified]

Section 245Q(2) of Income Tax Act

The application shall be made in quadruplicate and be accompanied by a fee of ten thousand rupees or such fee as may be prescribed in this behalf, whichever is higher.

Section 245Q(3) of Income Tax Act

An applicant may withdraw an application within thirty days from the date of the application.

Section 245Q(4) of Income Tax Act

Where an application for advance ruling under this Chapter is made before such date as the Central Government may, by notification in the Official Gazette, appoint, and in respect of which no order under sub-section (2) of section 245R has been passed or no advance ruling under sub-section (4) of section 245R has been pronounced before such date, such application along with all the relevant records, documents or material, by whatever name called, on the file of the Authority shall be transferred to the Board for Advance Rulings and shall be deemed to be the records before the Board for Advance Rulings for all purposes.

[Sub-section(4) of section 245Q newly inserted w.e.f. 1-April-2021 by the Finance Act 2021]

[The Central Government appoints 1st day of September, 2021 as the date for the purposes of sub-section (4) of section 245Q vide Notification No. 97/2021, S.O. 3562(E) dated 01.09.2021]


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