Govt Notifies e-advance ruling scheme, allows filing e-mail application

The finance ministry has notified the ‘e-advance rulings Scheme’, enabling taxpayers to file their application for advance ruling through e-mail, a move that will majorly benefit non-resident assesses in such proceedings.

The ‘e-advance rulings Scheme, 2022’, notified by the Central Board of Direct Taxes (CBDT), further provides that hearing before the Board for Advance Rulings will be conducted through video conferencing/ video telephony, where taxpayers would be granted an appropriate opportunity of being heard.

The advance ruling mechanism is provided in the Income Tax Act to provide upfront clarity to non-residents and certain other specified taxpayers, regarding the taxability of their transactions in India under Indian I-T laws.

The scheme also provides that all communications between the taxpayer/ income tax authorities and the Board for Advance Rulings will take place in electronic mode.

Every notice or order or any other electronic communication under this scheme from the Board for Advance Rulings will be delivered to the applicant by sending an e-mail to the registered email address of the applicant or his authorised representative.

It also states that the applicant or the authorised representative would file his response to any notice or order or any other electronic communication, under this scheme, to the Board for Advance Rulings through his registered email address.