Income Tax Act, 2025  ·  Chapter XVI — Appeals and Revision  ·  Section 355

Section 355
Interpretation

IT Act 2025 Chapter XVI Effective 1 April 2026 Old: 478
New Provision
Section 355, IT Act 2025
Replaces (IT Act 1961)
478
Chapter
Chapter XVI — Appeals and Revision
Effective From
1 April 2026
Statutory Text — Section 355

r the purposes of this Part,–– (a) “anonymous donation” means any voluntary contribution referred to in section 2(49)(c), where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars, as may be prescribed; (b) “approval” means an approval under the second proviso to section 80G(5) of the Income-tax Act, 1961 or section 354; (c) “cancellation” includes withdrawal; (d) “donation” means any voluntary contribution received by a registered non-profit organisation from any person; (e) “commercial activity” means any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity; (f) “registration” includes provisional registration, provisional approval or approval, as referred to in the second proviso to section 10(23C) or 12AB (1) of the Income-tax Act, 1961 and under section 332, but shall not include approval under the second proviso to section 80G(5) of the said Act or section 354; (g) “registered non-profit organisation” means any person having a valid registration under any specified provision and such registration has not been cancelled; (h) “related person” means any of the following persons:— (i) the author or the founder of the registered non-profit organisation; (ii) any person whose total contribution to such registered non-profit organisation, during the relevant tax year exceeds ₹ 100000, or, in aggregate up to the end of the relevant tax year exceeds ten lakh rupees, as the case may be;

(iii) where such author, founder or person is a Hindu undivided family, a member of the family; (iv) any trustee or manager (by whatever name called) of the registered non-profit organisation; (v) any relative of any persons referred to in sub-clause (i), (iii) or (iv); (vi) any concern in which any of the persons referred to in sub-clauses (i), (iii), (iv) or (v) has a substantial interest; (i) “relative”, in relation to an individual, means— (i) spouse of the individual; (ii) brother or sister of the individual; (iii) brother or sister of the spouse of the individual; (iv) any lineal ascendant (maternal or paternal) or descendant of the individual; (v) any lineal ascendant (maternal or paternal) or descendant of the spouse of the individual; (vi) spouse of a person referred to in sub-clause (ii), (iii), (iv) or (v); (vii) any lineal descendant of a brother or sister of either the individual or of the spouse of the individual; (j) “residual income” means the total income without giving effect to the provisions of this Part, as reduced by regular income and specified income; (k) “specified asset” means any asset which is established to have been directly acquired by the specified person–– (i) out of its income of the nature referred to in Schedule II (Table: Sl. No. 1); (ii) during the period beginning from the date of its creation or establishment and ending on the date from which the registration under specified provision became effective, if the specified person has not been allowed any benefit under this Part or under sections 11 and 12 or section 10(23C)(iv) or (v) or (vi) or (via) of the Income-tax Act, 1961 during the said period, where provisions of the first proviso or the second proviso to sub-section 12A(2) or the eighth proviso to section 10(23C)

Shahi & Co. — Our Understanding
This section falls under Chapter XVI which governs appeals and revision — your right to challenge an assessment order before the Commissioner (Appeals), ITAT, High Court, and Supreme Court.
Practical Note: If you receive an adverse assessment order, the appeal must be filed within the prescribed time limit. Delay in filing appeals is a common compliance failure that results in forfeiture of the right to appeal.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 355 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.