Section 95 of Income Tax Act for AY 2023-24

Section 95 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Applicability of General Anti-Avoidance Rule.

Amended and updated notes on section 95 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 applicability of General Anti-Avoidance Rule.

Chapter XA (Sections 95 to 102) of the Income Tax Act 1961 deals with the provisions related to General Anti-Avoidance Rule. Section 95 of IT Act 1961-2020 provides for applicability of General Anti-Avoidance Rule.

Recently, we have discussed in detail section 94B (Limitation on interest deduction in certain cases) of IT Act 1961. Today, we learn the provisions of section 95 of Income-tax Act 1961. The amended provision of section 95 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 95 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-95: Applicability of General Anti-Avoidance Rule

Section 95(1) of Income Tax Act

Notwithstanding anything contained in the Act, an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement and the consequence in relation to tax arising therefrom may be determined subject to the provisions of this Chapter.

Section 95(2) of Income Tax Act

This Chapter shall apply in respect of any assessment year beginning on or after the 1st day of April, 2018.

Explanation: For the removal of doubts, it is hereby declared that the provisions of this Chapter may be applied to any step in, or a part of, the arrangement as they are applicable to the arrangement.


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