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CA Final · Direct Tax Laws & International Taxation · Advance Rulings

A case scenario: The Central Government has constituted a Board for Advance Rulings under the Income-tax Act, 2025 to give advance rulings. As per the Act, how is the Board composed?

The Board for Advance Rulings has two members, and each must be an officer not below the rank of Chief Commissioner, as nominated by the Board. It is not a one-member body, and the minimum rank is higher than Commissioner. Judges are not required.

  1. AThree members, each being a retired High Court judge
  2. BTwo members, each being an officer not below the rank of Chief Commissioner, as nominated by the BoardCorrect
  3. CTwo members, each being an officer not below the rank of Commissioner
  4. DOne member, being a Principal Chief Commissioner of Income-tax

Explanation

Section 381(2) provides that the Board for Advance Rulings consists of two members, each an officer not below the rank of Chief Commissioner, nominated by the Board. The Commissioner-rank option understates the minimum rank required. The other options give wrong numbers or qualifications.

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