Skip to content

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

Reva Exports Ltd, a resident company, wants to approach the authority that gives advance rulings under the Income-tax Act, 2025. Which statement correctly describes the composition of a Board for Advance Rulings as provided in section 381?

A Board for Advance Rulings has two members. Each must be an officer not below the rank of Chief Commissioner, nominated by the Board, as stated in section 381(2). The rank is not Commissioner, and the Board has neither one nor three members nor a mandatory judge.

  1. AIt consists of two members, each an officer not below the rank of Chief Commissioner, nominated by the BoardCorrect
  2. BIt consists of three members, one of whom must be a High Court judge
  3. CIt consists of two members, each an officer not below the rank of Commissioner
  4. DIt consists of a single member of the rank of Principal Chief Commissioner

Explanation

Section 381(2) provides that the Board for Advance Rulings consists of two members, each being an officer not below the rank of Chief Commissioner, as nominated by the Board. The Commissioner-rank option is wrong because the rank floor is Chief Commissioner. No judge is required, and the Board has two members, not one or three.

Did you get it right without looking?

One question tells you little. A timed set on Advance Rulings shows your real accuracy, how long you take and where you lose marks.

Practise Advance RulingsFree diagnostic mock

More Advance Rulings questions