Amended and updated notes on section 245-OB of Income Tax Act 1961 as inserted by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Board for Advance Rulings.
Chapter XIXB (Sections 245N to 245V) of the Income Tax Act 1961 deals with the provisions related to Advance rulings . Section 245-OB of IT Act 1961 provides for Board for Advance Rulings.
Recently, we have discussed in detail section 245-OA (Qualifications of Chairman, Vice-Chairman and Member) of IT Act 1961. Today, we learn the provisions of section 245-OB of Income-tax Act 1961. The amended provision of section 245-OB 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 245-OB 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-245-OB: Board for Advance Rulings
Section 245-OB(1) of Income Tax Act
The Central Government shall constitute one or more Boards for Advance Rulings, as may be necessary, for giving advance rulings under this Chapter on or after such date as the Central Government may, by notification in the Official Gazette, appoint.
Boards for Advance Rulings vide Notification No. 96/2021 S.O. 3561(E) dated 01.09.2021: In exercise of the powers conferred by sub-section (1) of section 245-OB of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby constitutes the Boards for Advance Rulings specified in column (2) of the Schedule below, having its headquarters at the place mentioned in column (3) of the said Schedule, for the purposes of giving advance rulings under Chapter XIX-B of the said Act on or after the 1st day of September, 2021.
| Sl. No. | Board for Advance Rulings | Headquarters |
|---|---|---|
| (1) | (2) | (3) |
| 1. | Board for Advance Rulings-I | Delhi |
| 2. | Board for Advance Rulings-II | Delhi |
| 3. | Board for Advance Rulings-III | Mumbai |
Section 245-OB(2) of Income Tax Act
The Board for Advance Rulings shall consist of two members, each being an officer not below the rank of Chief Commissioner, as may be nominated by the Board.