VittSphere ONE Calculators Blog CA Prabhakar Kumar · FCA · ICAI 560762
Case lawIncome-tax Act 2025Chapter XIV › Section 240
Chapter XIVwas s.119A

Section 240 of the Income-tax Act, 2025

Section 240 — Taxpayer's Charter. Successor to s.119A of the 1961 Act.

Where this section sits

Section 240 is in Chapter XIV — Tax Administration, which runs from section 236 to section 261.

← Section 239  ·  Section 241 →

What this section does

A single sentence requiring the Board to adopt and declare a Taxpayer's Charter, and empowering it to issue orders, instructions, directions or guidelines to other income-tax authorities as it thinks fit for administering that Charter. The section neither sets out the contents of the Charter nor attaches any consequence to a departure from it.

Why it is there

It puts the Board under a statutory obligation to publish a Charter of taxpayer rights and expectations and gives it the administrative machinery to make the rest of the department work to it.

Who it applies to

What this means in practice

This is a machinery provision addressed to the Board and the authorities below it; it gives a taxpayer no right, remedy or time limit of its own. What matters practically is the Charter the Board declares under it, together with any instructions issued for its administration.

Where you meet this section

Nowhere directly — the section creates no right, remedy or time limit and attaches no consequence to a departure from the Charter. It is addressed to the Board, which must adopt and declare the Charter, and to the income-tax authorities below it; what a taxpayer actually encounters is the declared Taxpayer's Charter itself and any orders, instructions, directions or guidelines the Board issues for administering it.

The words themselves

The Board shall adopt and declare a Taxpayer's Charter and issue such orders, instructions, directions or guidelines to other income-tax authorities as it considers fit for the administration of such Charter.
s.240, Income-tax Act, 2025.

What people get wrong

What this replaced

The correspondence is the Income Tax Department’s own, from its comparison utility for the 1961 and 2025 Acts. A renumbering is the easy half; whether the words changed is the half that decides cases.

See the full 1961 to 2025 concordance.

What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.