CBDT sets up 3 Boards for Advance Rulings (BAR) to fast-track tax disputes

The Central Board of Direct Taxes (CBDT) has set up three Boards for Advance Rulings (BAR). the Boards will ensure faster disposal of cases and avoid income tax disputes, made operational from September 01, 2021.

• These BARS will take place of Authority for Advance Rulings (AAR) to avoid dispute in respect of assessment of tax liability and to provide tax certainty.
• two BARs have been set up in Delhi and one has been set up in Mumbai.

Difference between AAR and BAR: AAR  rulings were binding both on the applicants and the Tax department. However, advance rulings of BAR shall not be binding on the applicant or the Department and either of them may appeal against the ruling or order passed by the Board before the High Court.