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

The Central Board of Direct Taxes (CBDT) has constituted three Boards for Advance Rulings (BAR), to ensure faster disposal of cases and avoid income tax disputes.
The BARs have been made operational from September 01, 2021.
Out of the three BARs, two have been set up in Delhi and one in Mumbai.
Each BAR shall consist of two members, each being an officer not below the rank of Chief Commissioner.
These BARS will replace Authority for Advance Rulings (AAR), which was set up in 1993, to avoid dispute in respect of assessment of tax liability and to provide tax certainty.
Key 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.

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