Section 294

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2016 sir,
According to the normal provisions of Income tax Act,law enforceable on 1 day of relevant a.y would be applicable.However as per s294,the existing law or the proposed law whichever is more beneficial to assessee shall apply..so when does s294 exactly become applicable ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 January 2016 This situation has been mentioned in the section itself.
.
In a case where the provisions has not been made for charging the Income Tax in respect for that assessment year
or
the proposed provisions are contained in the Bill which is pending before the Parliament.
.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2016 sir,so that would mean that for instance A.Y 2016-17,FINANCE ACT 2015 will apply for all cases and finance bill 2016(will become act after 1/4/16) can be applied for the benefit of the assessee in respect of those cases where amendments are made in finance bill 2016

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 January 2016 I would like to further add as-
and due to any reason Finance Bill 2016 can not be passed by the Parliament, then the provisions of FA 2015 will remain in force for the AY starting from 1-4-2017.
.

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