Skip to content

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

Under the Income-tax Act, 2025, the Central Government constitutes Boards for Advance Rulings. Mehta & Co. is advising a client on who sits on such a Board. Which statement about the composition of a Board for Advance Rulings is correct?

A Board for Advance Rulings has two members. Each must be an officer not below the rank of Chief Commissioner, nominated by the Board. It has no judicial member and no single-member form, and the rank of Commissioner is too low.

  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, including one judicial member from the High Court
  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 has two members, each an officer not below the rank of Chief Commissioner, nominated by the Board. The other options change the number of members or lower the rank, and none of them matches the text.

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