Section 380
Section 380: interpretation clause for advance rulings
Section 380 opens the Act's advance rulings provisions with the key definitions - what counts as an "advance ruling", who is an eligible "applicant", and what "application", "Board for Advance Rulings" and "Member" mean for this Chapter.
What is an 'advance ruling'
"Advance ruling" means:
- A determination by the Board for Advance Rulings on a transaction undertaken, or proposed to be undertaken, by a non-resident applicant
- A determination on the tax liability of a non-resident, arising from a transaction undertaken or proposed with a resident applicant
- A determination on the tax liability of a resident applicant, arising from a transaction they have undertaken or propose to undertake - including determination of any question of law or fact specified in the application
- A determination or decision on an issue relating to computation of total income that is pending before an income-tax authority or the Appellate Tribunal - including any related question of law or fact specified in the application
- A determination or decision on whether a proposed arrangement (by a resident or non-resident) is an impermissible avoidance arrangement under Chapter XI
Who can be an 'applicant'
"Applicant" means a person who:
- Is a non-resident falling within clause (a)(i) above
- Is a resident falling within clause (a)(ii) above
- Is a resident falling within clause (a)(iii) above, of a class or category the Central Government specifies by notification
- Is a resident falling within a class or category the Central Government specifies by notification for this purpose
- Is a person referred to in clause (a)(v) above (regarding impermissible avoidance arrangements)
Other defined terms
"Application" means an application made to the Board for Advance Rulings under section 383(1).
"Board for Advance Rulings" means the Board for Advance Rulings constituted by the Central Government under section 381.
"Member" means a Member of the Board for Advance Rulings.
Frequently asked questions
Can a resident taxpayer apply for an advance ruling, or is it only for non-residents?
A resident can be an eligible applicant in specific circumstances under Section 380 - for their own transactions with a non-resident, for their own tax liability if they fall within a Central Government-notified class, or in relation to an impermissible avoidance arrangement question - not just non-residents generally.
Does an advance ruling cover GAAR (impermissible avoidance arrangement) questions?
Yes - Section 380(a)(v) includes, within the definition of "advance ruling", a determination by the Board for Advance Rulings on whether a proposed arrangement is an impermissible avoidance arrangement under Chapter XI.
Related sections
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Talk to our team about seeking an advance rulingLast updated 9 September 2026