CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices
Mehta Textiles Ltd, an Indian concern, is a constituent of a group with two other Indian concerns, Mehta Dyes Ltd and Mehta Exports Ltd. An offshore transfer triggers the reporting requirement. The group wants a single Indian concern to file the information for all three. Under Rule 235 of the Income-tax Rules, 2026, which condition must be satisfied?
One Indian concern can file for the whole group only if the group has designated it to furnish information on behalf of the other Indian concerns, and that designation has been conveyed in writing on behalf of the group to the Assessing Officer. Rule 235(4) sets these two conditions; no Board approval is needed.
- AThe group designates one Indian concern to furnish information for all, and the designated concern's details are conveyed in writing on behalf of the group to the Assessing OfficerCorrect
- BAny one Indian concern may file without any designation or intimation
- CThe Board must give prior written approval for the single filing
- DThe Indian concern with the highest turnover must file, and others are exempt from maintaining documents
Explanation
Rule 235(4) allows one Indian concern to furnish information if the group has designated it to act for all other Indian concerns of the group, and the information about the designated concern has been conveyed in writing on behalf of the group to the Assessing Officer. No Board approval or turnover test is prescribed. Under sub-rule (5), if the designated concern fails to furnish the information properly, the relief in the rule does not apply.
Did you get it right without looking?
One question tells you little. A timed set on Provisions to Counteract Unethical Tax Practices shows your real accuracy, how long you take and where you lose marks.
More Provisions to Counteract Unethical Tax Practices questions
- An Indian concern, Bharat Components Ltd, is covered by section 506 of the Income-tax Act, 2025. A foreign parent's shares were transferred …
- Under the Income-tax Act, 2025, the Board wishes to share information obtained by an income-tax authority with an officer performing functio…
- Ashoka Traders Ltd, an Indian concern, transferred-share information filed under Rule 235 of the Income-tax Rules, 2026 for a transfer in th…
- Under section 258 of the Income-tax Act, 2025, Rohan applies to a Principal Commissioner in the prescribed form for information about an ass…
- Meridian Components Pvt Ltd is an Indian concern. Shares of its foreign parent were transferred during a financial year, and the transfer ha…
- Kaveri Industries Ltd, an Indian concern, furnished information under Rule 235 for a group transfer. It is one of three Indian concerns form…