Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions
Section 383
Section 383: application for advance ruling
Section 383 sets out the application procedure for an advance ruling under the Income-tax Act, 2025. It sets out how an applicant states a question for an advance ruling in the prescribed form and manner, pays the prescribed fee, and may withdraw the application within thirty days. Section 383 does not impose a general before-transaction or before-return timing condition.
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Need advice on Section 383?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) An applicant desirous of obtaining an advance ruling under this Chapter, may make an application in such form and manner, as may be prescribed, stating the question on which the advance ruling is sought.
(2) The application shall be accompanied by a fee, as may be prescribed.
(3) An applicant may withdraw an application within thirty days from the date of the application.
Introduction
An applicant seeking an advance ruling under the chapter files an application that states the question to be decided.
Section 383 leaves the form, manner and fee to prescription and allows withdrawal within thirty days from the application date.
Key takeaways
Question must be stated
The application identifies the question on which an advance ruling is sought.
Prescribed form and fee
The section calls for the prescribed filing method and accompanying fee, rather than fixing those details in its own text.
Thirty-day withdrawal
The applicant may withdraw within thirty days from the date of application.
What Section 383 says
"An applicant desirous of obtaining an advance ruling under this Chapter, may make an application in such form and manner, as may be prescribed, stating the question on which the advance ruling is sought."
The application must be accompanied by a fee, as may be prescribed.
An applicant may withdraw an application within thirty days from the date of the application.
Key points
- The application must state the specific question on which an advance ruling is sought.
- Form, manner and the fee amount are left to be prescribed (by rules), not fixed in the section itself.
- Withdrawal is permitted only within thirty days from the date of the application - after that window, the application proceeds under the Board for Advance Rulings' process set out in Section 384.
Applying Section 383 in practice
Sequence. Frame the precise tax question first; submit it in the prescribed form and manner with the prescribed fee; preserve the filing date and acknowledgment. An applicant may withdraw within 30 days from the application date. The section does not fix a rupee fee or authorise a later withdrawal as of right.
Hypothetical example
An applicant files on 1 June and decides to withdraw on 20 June. The 30-day statutory window is relevant; record the filing and withdrawal dates.
Step-by-step flow for applying for an advance ruling under Section 383
- 1
Is the person an "applicant" under section 380(b)?
Check which clause of section 380 the question falls under.
- No: An application under Section 383 cannot be made.
- Yes: Go to the next step.
- 2
State the question on which the ruling is sought
Section 383(1) requires the application to state the question.
- 3
Use the prescribed form and manner
The form and manner are prescribed by rules; Section 383 does not set them out.
- 4
Pay the prescribed fee
Section 383(2) requires the application to be accompanied by the prescribed fee. The amount is not stated in the section.
- 5
Does the applicant want to withdraw?
- Within thirty days from the date of the application: The applicant may withdraw under Section 383(3).
- After thirty days: Section 383(3) does not give a right to withdraw; the application is dealt with under section 384.
Practical checklist
Do
- State the proposed ruling question clearly and check the prescribed form, manner and fee.
- Retain the filing date and acknowledgment if withdrawal may be considered.
Avoid
- Do not assume the section itself specifies a fixed fee amount.
Illustrative example
Worked example: applying and then reconsidering
Hypothetical facts (illustration only, not a real taxpayer): A non-resident company makes an application for an advance ruling dated 4 June 2027 on a proposed transaction. It states the question, uses the prescribed form and pays the prescribed fee. On 20 June 2027 it decides to drop the proposed transaction. Dates are assumed.
Eligibility
As a non-resident asking about its own proposed transaction, it is an applicant under section 380(b)(i).
Contents
The application states the question, as Section 383(1) requires, and is accompanied by the prescribed fee (Section 383(2)).
Withdrawal window
Thirty days from 4 June 2027: counting from 5 June, June gives 26 days and 4 July 2027 is day 30.
Withdrawal
20 June 2027 is 16 days after the application, within the thirty days, so the company may withdraw.
Outcome
- The company can withdraw its application on 20 June 2027.
- After 4 July 2027, Section 383(3) would no longer give it the right to withdraw.
Glossary
- Application
- A request to the Board for Advance Rulings under Section 383(1), stating the question on which the ruling is sought.
- Prescribed fee
- The fee fixed by rules that must accompany the application. Section 383 does not state the amount.
Frequently asked questions
Within how many days can an advance ruling application be withdrawn?
Within thirty days from the date of the application, as stated in Section 383(3).
Is a fee payable with an advance ruling application?
Yes - Section 383(2) requires the application to be accompanied by a fee, with the amount to be prescribed by rules.
Can an applicant leave the question to be supplied later?
The application must state the question on which the ruling is sought. Check the current rule for form particulars.
Need help applying this provision to your situation?
Talk to our tax team about seeking an advance rulingLast updated 10 October 2026