Income Tax Form 120: Advance Ruling Application Form (Section 383(1))

Form No. 120 is a unified application introduced under the Income-tax Act, 2025 for seeking advance rulings from the Board for Advance Rulings (BAR) on tax implications of proposed or completed transactions. It replaces multiple earlier forms and is primarily used by non-residents, residents dealing with non-residents, high-value resident taxpayers, public sector companies, and applicants under GAAR provisions. The form is filed online without any prescribed time limit and is transaction-based, with fees determined by transaction value or applicant category. It requires detailed disclosures, including facts, legal interpretation, group structure, beneficial ownership, and supporting documents. Applications cannot be filed where issues are already pending before tax authorities or courts (except for PSUs). The BAR provides binding rulings on applicants and tax authorities, subject to appeal before the High Court. The new form enhances transparency, standardization, and efficiency by consolidating earlier forms, enabling digital filing, and ensuring structured information for quicker decision-making.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 120: Form of application for obtaining an advance ruling under section 383(1) of Income Tax Act, 2025

FORM NO. 120 – FREQUENTLY ASKED QUESTIONS (FAQS)

Q1. What is Form No. 120?

Ans: Form No. 120 is an application form primarily used by non-resident applicants to seek a determination or ruling from the Board for Advance Rulings (BAR) on questions of law or fact relating to proposed or undertaken transactions by the applicant. These forms facilitate clarity and certainty on tax liability issues in advance, avoiding future disputes and litigations.

Q2. Who should file Form No. 120 and what is prescribed fee for seeking an Advance
Ruling?

Ans: Form No. 120 can be filed by following category of applicants by paying prescribed fee as mentioned against respective category of applicants/transaction value below:

Q3. When is Form No. 120 required to be filed?

Ans: Form No. 120 is required to be filed only if the applicant/taxpayer intends to seek a determination or ruling from the Board for Advance Rulings (BAR) on questions of law or fact relating to proposed or undertaken transactions by the applicant.

Q4. What is the time limit for filing Form No. 120?

Ans: There is no time limit for filing Form No. 120. Filing of Form No. 120 purely depends upon the intention of assessee i.e. whether he intends to obtain advance ruling in respect of a transaction already completed or proposed to be completed in future.

Q5. How many times can Form No. 120 be filed in a year?

Ans: Form No. 120 is transaction/event based and is only filed in case of an applicant intending to obtain advance ruling from the Board of Advance Rulings (BAR). There is no fixed annual frequency; it depends upon the number of transactions in respect of which an applicant wishes to obtain advance ruling. It is quite important to mention here that an applicant cannot file multiple Form No. 120 in respect of a single transaction.

Q6. What documents are required to file Form No. 120?

Ans: Proof of payment of application fee (challan, bank receipt, etc.).

• PAN card copy (for residents and non-residents if allotted).
• Taxpayer Identification Number (TIN) or equivalent for non-residents.
• Certificate of incorporation/registration (company, trust, partnership, etc.).
• Address and identity proof of applicant.
• Proof of being Non-resident.
• Details and documents regarding business/profession (Memorandum of Association, Partnership/Trust deed, etc.).
• Question(s) relating to the transaction on which advance ruling is required.
• Statement of relevant facts having a bearing on the question(s).
• Statement of interpretation of law or facts.
• Copies of relevant agreements/arrangements giving rise to transaction, if any.
• Supporting documents for group structure/beneficial ownership (for non-residents).
• Details of other parties to arrangement (Identity, PAN, Relation).
• Document indicating Tax year(s) during which the tax benefit is likely to arise (give year wise break-up).
• Any relevant assessment orders, appellate orders, or documents if proceedings/arbitrations are pending or decided.
• Authorization letter/power of attorney if the application is filed by an authorized representative.
• Any other document as required by the Board or mentioned in instructions relevant to the case.
• The applicant shall, along with the attachment, provide an index of the documents uploaded with the description and corresponding page numbers.

Q7. Do I need to attach proof of fee payment?

Ans: Yes. Proof of fee payment (challans/BSR codes) is mandatory for filing of Form No. 120.

Q8. How and where is the fee paid?

Ans: The fee must be paid online through the Bharat Kosh portal, and the receipt must be attached with the application.

Q9. If I don’t have PAN and I have never been assessed to tax in India, can I still apply for an advance ruling before BAR?

Ans: Yes. If you do not have a PAN and have never been assessed to tax in India, you can still apply for an advance ruling before the Board for Advance Rulings (BAR). In such cases, the Department will allot a PAN after obtaining the required particulars from you.

Q10. While filling Part A, can I leave mobile number blank?

Ans: Mobile number ensures faster communication and verification; it is recommended to provide it.

Q11. What if I don’t upload requisite documents at the time of filing Form No. 120?

Ans: Your application for seeking advance ruling will be processed only when the requisite documents are submitted. If your application is found defective, the Secretary, BAR shall seek an explanation from you as to why the application may not be rejected and direct you to submit any relevant material or information in support of such application within such time as allowed by the BAR.

Q12. Can I file Form No. 120 after filing an appeal against the order of any Income Tax Authority, the Appellate Tribunal or any court?

Ans: No. Form No. 120 can only be filed in respect of question(s) or transaction(s) on which on which the advance ruling is sought, which is/are not pending before any Income Tax Authority, the Appellate Tribunal or any court.

Q13. Can Form No. 120 be filed offline?

Ans: No. Henceforth, Form No. 120 can only be submitted online through the Income Tax e-Filing Portal.

Q14. Can I edit Form No. 120 after submission?

Ans: No. Once Form No. 120 is submitted and acknowledgment is generated, it cannot be edited. Ensure all details are correct before submission.

Q15. What are common mistakes to avoid?

Ans: Following common mistakes should be avoided: –

• Incomplete or unsigned forms
• Missing Annexures or Proof of Fee Payment
• Inadequate disclosure of Group Structure and Beneficial Ownership
• Submitting from an unregistered Email ID.

Q16. Is advance ruling available only before entering into a transaction?

Ans: No. An advance ruling can be sought both before or after undertaking a transaction, as long as the issue is not pending before any income-tax authority, Tribunal, or Court (except for PSUs).

Q17. What type of questions can I ask in an advance ruling application?

Ans: You may ask questions of law, fact, or mixed questions directly relating to your tax liability, including:

• DTAA interpretation
• Permanent Establishment
• Withholding tax
• Taxability of services, royalties, fees
• GAAR applicability

Q18. Can multiple questions be raised in one application?

Ans: Yes. Multiple questions may be raised, provided they arise from the same transaction/arrangement and are clearly framed.

Q19. Can advance rulings be sought for proposed or ongoing/completed transactions?

Ans: Yes. Advance rulings may be sought for transactions proposed or already undertaken, provided the question is not pending before any income-tax authority, Tribunal, or Court (subject to PSU relaxation).

Q20. Can I withdraw my advance ruling application?

Ans: Yes. An application may be withdrawn within 30 days from the date of filing.

Q21. I want to declare that no question(s) on which advance ruling is sought is pending before any Income Tax Authority, the Appellate Tribunal or any court. Where should this be mentioned?

Ans: This is mandatory part of the Verification Section of Form No. 120.

Q22. What happens if my application is found defective?

Ans: If the application is defective, the Secretary of the BAR will intimate the defects and grant a reasonable opportunity to rectify them. The application will be treated as filed only after defects are removed.

Q23. Will my application be rejected automatically if the tax department does not send records?

Ans: If the jurisdictional PCIT/CIT fails to furnish records, the BAR may still proceed to allow or reject the application without waiting for those records.

Q24. Is the applicant entitled to a hearing before rejection or final disposal?

Ans: Yes. Before rejection or final disposal, the applicant must be given a reasonable opportunity of being heard.

Q25. Can I modify or reframe questions after filing the application?

Ans: Normally, questions cannot be amended. However, in deserving cases, the BAR may permit modification or reframing of questions before the hearing.

Q26. What are the conditions which may cause my application to be summarily rejected?

Ans: Under section 384(3) of the Income Tax Act, 2025 certain restrictions have been imposed on the admissibility of the application. The BAR is bound to reject applications which raise the following three categories of questions.

• The question is pending before any income-tax authority, Tribunal, or Court (except PSU relaxation);
• It involves determination of fair market value of property; or
• It relates to a transaction designed primarily for tax avoidance (other than GAAR rulings).

Q27. What are the legal consequences of a ruling (binding effect, appeal, voidness, limitation)? Ans:

• Binding effect: Binding on the applicant and jurisdictional income-tax authorities for the specific transaction.
• Voidness: Can be declared void ab initio if obtained by fraud/misrepresentation.
• Appeal: Appeal lies to the jurisdictional High Court within 60 days of communication.
• Limitation: Pendency period before BAR is excluded while computing limitation for assessment/reassessment.

Q28. Can BAR ask for additional facts or documents later?

Ans: Yes. BAR may permit or require submission of additional facts, which must be duly verified.

Q29. Can the advance ruling be appealed?

Ans: Yes. Either the taxpayer or the Department may appeal to the High Court within 60 days of communication.

Q30. Is the time taken by BAR excluded from limitation periods?

Ans: Yes. The period during which the advance ruling application is pending is excluded while computing limitation periods for assessment.

Q31. Can an advance ruling be declared void later?

Ans: Yes. If the ruling is obtained by fraud or misrepresentation, BAR may declare it void ab initio.

Q32. Can the BAR amend or correct its own order?

Ans: Yes. The BAR may rectify mistakes apparent from the record, either on its own motion or on an application by the taxpayer or the Department, after giving an opportunity of being heard.

Q33. Is an advance ruling binding forever?

Ans: No. The ruling is binding only so long as there is no change in facts or law. Any material change can render the ruling inapplicable.

Q34. Can Public Sector Companies seek advance rulings despite pendency of proceedings?

Ans: Yes. Public Sector Companies are permitted to seek advance rulings even if proceedings are pending on the same or similar issues before income-tax authorities or appellate forums.

Q35. Is GAAR determination available to all categories of persons?

Ans: Yes. Any person (resident or non-resident) may seek an advance ruling on whether an arrangement constitutes an impermissible avoidance arrangement under GAAR.

Q36. What practical benefit does an advance ruling offer in cross-border transactions?

Ans: Advance rulings offer certainty on DTAA interpretation, withholding tax, PE exposure, and income characterization, enabling taxpayers to structure cross-border transactions confidently and compliantly.

Q37. Who can be an Authorized Representative?

Ans: An applicant’s authorized representative should fulfil the requirements spelt out in section 515(3)(a) of the Income Tax Act, 2025. The expression “authorized representative”, in relation to the PCIT/ CIT, means a person authorized by it in writing to appear, plead and act for it in any proceedings before the BAR.

Guidance Note on Income Tax Form 120: Form of application for obtaining an advance ruling under section 383(1) of Income Tax Act, 2025

Form No. 120 – Form seeking Advance Rulings Before Board for Advance Rulings Purpose:

The purpose of filling forms for advance rulings under the Income-tax Act is to seek a determination or ruling from the Board for Advance Rulings (BAR) on questions of law or fact relating to proposed or undertaken transactions by the applicant. These forms facilitate clarity and certainty on tax liability issues in advance, avoiding future disputes and litigations. The forms include details of the applicant, the transaction, relevant facts, legal interpretations, and fee payment proof, ensuring a structured, transparent, and efficient process.

Who Should File: 

Frequency & Due Dates:

• Filing Frequency:

There is no fixed frequency or periodic schedule for submitting advance ruling applications. Forms are filed as and when an applicant has a transaction (proposed or undertaken) needing tax certainty or a legal decision.

• Due Dates:
  • An application can be filed prior to or after entering into the transaction, depending on the applicant’s requirement.
  • There is no statutory last date for filing; it is transaction-driven and at the applicant’s discretion.
  • Withdrawal window: An applicant may withdraw their application within 30 days from the date of filing.
  • Fee payment: Proof of payment must be attached at the time of application submission. Page 1 of 4

Structure of Form No. 120:

• Applicant’s identification: name, PAN, address, contact details, citizenship, and status.
• Details of residency (resident/non-resident).
• Date of Incorporation and details of Authorized Representative in India.
• Fee payment details (amount, challan number, date, and bank info).
• Statement of relevant facts concerning the ruling request.
• Statement interpreting the law or facts as per the applicant.
• Information about the transaction/arrangement subject to advance ruling, including the tax benefit, parties involved.
• Disclosure of any pending related proceedings or issues decided by tax authorities or courts.
• Verification by the applicant.

Documents required to file the Form No. 120:

Following documents are required for filing Form No. 120 :

• Proof of payment of application fee (challan, bank receipt, etc.).
• PAN card copy (for residents and non-residents if allotted).
• Taxpayer Identification Number (TIN) or equivalent for non-residents.
• Certificate of incorporation/registration (company, trust, partnership, etc.).
• Address and identity proof of applicant.
• Proof of being Non-resident.
• Details and documents regarding business/profession (Memorandum of Association, Partnership/Trust deed, etc.).
• Question(s) relating to the transaction on which advance ruling is required.
• Statement of relevant facts having a bearing on the question(s).
• Statement of interpretation of law or facts.
• Copies of relevant agreements/arrangements giving rise to transaction, if any.
• Supporting documents for group structure/beneficial ownership (for non-residents).
• Details of other parties to arrangement (Identity, PAN, Relation).
• Document indicating Tax year(s) during which the tax benefit is likely to arise (give year wise breakup).
• Any relevant assessment orders, appellate orders, or documents if proceedings/arbitrations are pending or decided.
• Authorization letter/power of attorney if the application is filed by an authorized representative.
• Any other document as required by the Board or mentioned in instructions relevant to the case.
• The applicant shall, along with the attachment, provide an index of the documents uploaded with the description and corresponding page numbers.

Filing Count:

43 Applications of Form 34C, 34D, 34DA, 34E and 34EA have been filed over the past five years.

Process Flow of filing Form No. 120:

The process flow includes following steps:

• Prepare the application: Fill Form No. 120, ensuring all sections are complete with accurate applicant details, transaction/arrangement info, questions on which ruling is sought, facts, and interpretations.
• Attach mandatory documents: Documents relevant to statement of facts and interpretation of law/facts, plus all supporting documents, agreement copies, and proof of fee payment.
• Sign/verify: Application, annexures, and all attached statements must be signed or digitally signed by the authorized person (as per applicant type), and furnished from the registered email address.
• Submit online: Henceforth, new Form No. 120 can only be submitted online through the Income Tax e-Filing Portal.
• Rectify defects: If application is found defective, rectify and resubmit within allowed time.
• An application is scrutinized for completeness and correctness.

Outcome of Processed Form No. 120:

• Application is sent for comments, records may be called from the jurisdictional Pr. CsIT/CsIT; applicant may be asked for clarifications.
• Applicant may withdraw its application within 30 days, or BAR may reject the application if it does not fulfill eligibility or if questions are pending elsewhere.
• The Board may allow/reschedule hearings—fully online through video conferencing.
• After examination and hearing (if needed), the BAR pronounces its advance ruling on the specific question(s) raised in the application.
• The ruling is communicated to both applicant and the Revenue.
• If dissatisfied, either party (applicant or Revenue) can appeal against the ruling to the jurisdictional High Court.
• The period during which the application is pending before the BAR is excluded from the limitation period for assessment.

Brief note on broad or qualitative changes proposed:

Key updates include the following:

• Expanded and Structured Information Requirements:
  • The new form introduces more granular particulars regarding beneficial ownership, parent company structures, and parties involved—reflecting strengthened focus on transparency and international tax compliance.
• Adaptation to New Regulatory Contexts:
  • There are specific documentation for similar/related proceedings, and disclosure of concurrent litigation or prior decisions.
• Improved Applicant Experience, Expedited Process:
  • Multiple old forms (34C, 34D, 34DA, 34E, 34EA) are now combined into a single Form No.120 for all categories of applicants, with streamlined fields for non-resident, resident, PSU, or GAAR queries.
  • Simplification of Rules and Forms has also led to approximate reduction of 4,690 words (58.86 percent).
  • Currently none of the BAR Forms are available online. The Committee has recommended that the new combined BAR Form i.e. Form No. 120 be made available online. Further, Systems has been apprised of the requirements. In the proposed system, following issuance of a notice by the Secretary, BAR, on ITBA, an intimation should be sent to the concerned Assessing Officer (AO) through ITBA to abate proceedings and disable related functionalities, preventing any further action by the AO. Systems have been apprised of this requirement.

Challenges and Solutions:

Challenges in Old Forms 34C, 34D, 34DA, 34E, and 34EA (Advance Rulings):

• Insufficient Disclosure Requirements:

Forms collected only basic facts; they often lacked detailed fields for group structures, beneficial ownership, or relationships—leading to queries, delays, or additional requests.

Solutions in New Form No. 120

• Enhanced and Standardized Information:

All forms require detailed and standardized disclosures including identity, group structure, beneficial ownership, transaction parties, and parent/ultimate holding companies.

Common Changes made across Forms:

• Single Unified Online Form:

Multiple old forms (34C, 34D, 34DA, 34E, 34EA) have now been combined into a single digital Form No. 120 for all categories of applicants, with streamlined (Drop-Down based Optional) fields for nonresident, resident, PSU, or GAAR queries.

• Enhanced and Standardized Information:

New Form No. 120 require detailed and standardized disclosures including identity, group structure, beneficial ownership, transaction parties, and immediate/ultimate parent holding companies.

• Mandatory Attachments & Annexures:

Applicants must now submit structured annexures/statements on facts, legal interpretations, and ownership diagrams, improving clarity and completeness.

• Digital Filing and Verification:

New Form No. 120 is proposed to be made available online, authenticated using digital signatures, reducing manual paperwork and increasing reliability.

• Group Structure & Beneficial Owner Definitions:

Every applicant must provide comprehensive details on group structures and beneficial owners as per latest definitions (Companies Act, PMLA, FATF).

• Simplified & Detailed Instructions:

The new Form No. 120 provides detailed notes, definitions and ensuring applicants are well-guided. Stepwise instructions, definitions, and explanatory notes in the new form to improve accuracy.