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This rule defines key terms used in the Income-tax Rules, 1962, such as “Act” (referring to the Income-tax Act, 1961) and “authorised bank” (as appointed by the RBI). It also clarifies that references to “Forms” pertain to those in Appendix II.
The Income-tax Rules, 1962 were notified by the Central Board of Revenue under the powers conferred by Section 295 of the Income-tax Act, 1961. These rules came into effect on 1st April, 1962 and are officially titled as the Income-tax Rules, 1962.
Sections 10(2A) to 10(2F) provide various income tax exemptions, including for House Rent Allowance (HRA), Leave Travel Concession (LTC), Voluntary Retirement Scheme (VRS) compensation, and allowances for government employees. Exemptions are also available for income of charitable trusts and pension/investment funds subject to specific conditions.
Sections 10(2BA) to 10(2DB) lay down exemption criteria for various government-notified pension funds, venture capital funds, and other specified investment vehicles. These exemptions are granted subject to registration, investment restrictions, and compliance with government guidelines.
Rules 2DCA and 2DD outline the methodology for computing exempt income of specific funds such as pension or provident funds, ensuring uniform treatment and preventing double deductions.
Sections 5 to 5AD cover the treatment of depreciation on fixed assets, allowance for investment in new plant and machinery, and mandatory reporting via audit reports. These provisions are key for businesses to claim appropriate deductions and comply with tax audit requirements.
Sections 8AA to 8AD provide rules for determining the holding period of assets, computation of Written Down Value (WDV), treatment of capital gains, and classification of goodwill under capital gains, which are essential for accurate taxation on asset transfers.
Rules 6AAB and 6ABBB pertain to reporting and amortization of preliminary expenses and capital expenditure for specified businesses, often linked to Sections 35D and 35AD of the Act. Proper documentation is required for claiming deductions.
Rules 5C to 5G and 6 to 6AAH deal with recognition and approval of scientific research associations and skill development projects for availing benefits under Sections 35 and 35AD. These promote innovation and sector-specific development through tax incentives.
Rules 10A to 10R cover methods for determining the Arm’s Length Price (ALP), required documentation, and compliance for international and specified domestic transactions. These ensure fair pricing between associated enterprises.
Rules 10TA to 10TG offer safe harbour margins and thresholds for eligible international transactions, simplifying compliance for taxpayers engaged in transfer pricing by reducing litigation risk.
Rules 10TI to 10TIC expand on safe harbour and introduce provisions for Mutual Agreement Procedures (MAP) to resolve transfer pricing disputes under tax treaties, ensuring smoother resolution of cross-border tax issues.
Rules 10U to 10UF define the procedural and substantive framework for the General Anti-Avoidance Rules (GAAR), which target impermissible avoidance arrangements aimed at gaining undue tax benefits.
Rules 8AB, 11UAE, and 11UACA provide specific guidance on attribution of income, computation of Fair Market Value (FMV), and taxation of slump sales, aiding in proper assessment of complex asset transfers.
Rules 11U to 11UAD specify methods for calculating FMV of shares, immovable properties, inventory, and other assets under various capital gains and transfer pricing provisions, critical for fair taxation.
Rules 6F to 6H define the maintenance of books of accounts and formats for audit reports under Section 44AB and others. These ensure financial transparency and help in effective scrutiny by tax authorities.
Rules 6A to 6EB prescribe the conditions for claiming deductions on capital, advertising, interest, and guesthouse-related expenses. Compliance with these rules helps businesses minimize disallowances during tax assessments.
Rules 6DD to 6DDD provide exceptions to the cash payment restrictions under Section 40A(3), where payments above the specified limit are allowed in cash under certain conditions like absence of banking facilities.
Rules 7 to 8A detail the income apportionment methods for composite activities such as growing and manufacturing tea, coffee, and rubber, which involve both agricultural and business income components.
Rules 9 to 9C deal with expenses related to royalty payments, production of films, and treatment of unabsorbed losses in case of amalgamations, offering necessary deductions to creative and merging entities.
Rules 11AA to 11DD govern procedures for obtaining deductions under Section 80G (donations), 80GGA (scientific research), 80-IA/IB (infrastructure), and 80U (disability), with emphasis on certification and compliance.
Rules 10, 11, and 11UC deal with taxation and reporting of income by non-residents, including valuation of international assets and foreign source income under Sections 9 and 285A of the Act.
Rules 2C to 2CA and 11G to 11N contain procedural requirements for approval, maintenance of records, and audit of institutions claiming exemption under Section 10(23C), 12A/12AB, ensuring accountability.
Rules 11P to 11T relate to computation of income under the tonnage tax scheme (Chapter XII-G), which applies a presumptive income method for qualifying shipping companies, simplifying tax compliance.
Specifies the forms and conditions for filing return of income and fringe benefits under various provisions of the Income-tax Act.
Lays down the process for return preparation and submission by an authorised representative on behalf of the assessee.
Defines the prescribed person eligible to verify the return in case of a company or LLP under specific clauses of Section 140.
Outlines conditions for furnishing return of income by certain notified persons referred to in clause (b) of sub-section (1) of Section 139.
Specifies the procedure and form for filing an updated return of income under Section 139(8A).
Provides the form and process for filing return of income in cases of business reorganization under Section 170A.
Specifies the return of income format for cases involving block assessments under Section 158BC (search and seizure cases).
Requires mutual fund trustees to file a statement regarding income distributed to unit holders, as per Section 115R(3A).
Mandates filing of a statement by specified companies in relation to distributed income under Section 115TA(3).
Requires investment funds to file statements about income passed to unit holders under Section 115U(2).
Outlines the statement filing obligations of business trusts relating to distributed income under Section 115UA(4).
Specifies the requirements for alternate investment funds (AIFs) to furnish statements under Section 115UB(7).
Requires certain persons to furnish statements regarding distributed income of securitisation trusts under Section 115TCA(4).
Designates the income-tax authority responsible for centralised communication and issue of notices under Section 133D.
Identifies the prescribed authority for issuing notices for scrutiny assessments under Section 143(2).
Specifies the income-tax authority empowered to call for information before assessment under Section 142(1).
Details the requisition and reference procedures relating to search and seizure operations under Section 132.
Lays down the methodology and process for valuation of undisclosed assets found during search proceedings.
Specifies the prescribed form of verification for submissions made in response to notices under Section 142.
Prescribes the format for special audit reports ordered during assessment proceedings under Section 142(2A).
Details the manner in which a Permanent Account Number (PAN) shall be made inoperative if not linked with Aadhaar.
Provides guidance for determining expenses incurred for conducting audits, particularly for tax audit purposes.
Defines the manner of electronic authentication of records using Electronic Verification Code (EVC) under Section 144B(7)(i)(b).
Prescribes the form and content of notices of demand issued for regular or summary assessments under the Act.
Specifies the form and manner in which an assessee can make a declaration under Section 158A to avoid multiple appeals on identical questions of law that are already pending before higher judicial authorities.
Also relates to the declaration under Section 158A, particularly concerning the procedure or conditions for filing, ensuring that disputes on the same legal issue are not pursued repeatedly across different assessment years.
Designates the prescribed authority responsible for approving any institution or body established for scientific research under the Income-tax Act.
Specifies the authority for exemption purposes under clauses (8A) and (8B) of Section 10, related to diplomatic and international employees.
Details the requirements and conditions for approval of a fund set up by a trade union for welfare of members.
Prescribes the audit report format for institutions claiming exemption under the tenth proviso to Section 10(23C).
Specifies the form of report required to claim deduction under Section 10A for export-oriented undertakings.
Details the particulars that must be filed with the return of income for claiming deductions under Section 10A(1B)(b).
Specifies the audit report format required to claim deductions under Section 10B by 100% export-oriented units.
Provides the form of report required for claiming deduction under Section 10BA for export of handmade goods or articles.
Outlines the procedure for exercising the option to apply income of trust/institution under Section 11.
Specifies the form and process for applying for registration of a charitable or religious trust or institution under Section 12A/12AB.
Mandates the audit report format for trusts or institutions claiming tax exemption under Section 11 and Section 12.
Lists the permissible forms or modes in which charitable or religious institutions can invest their funds.
Specifies the conditions and operational guidelines for electoral trusts to qualify for exemption under the Act.
Prescribes the method of valuation of assets transferred by a trust upon conversion into a non-charitable entity for taxation under Section 115TD.
Designates the prescribed authority responsible for approving any institution or body established for scientific research under the Income-tax Act.
Specifies the authority for exemption purposes under clauses (8A) and (8B) of Section 10, related to diplomatic and international employees.
Details the requirements and conditions for approval of a fund set up by a trade union for welfare of members.
Prescribes the audit report format for institutions claiming exemption under the tenth proviso to Section 10(23C).
Specifies the form of report required to claim deduction under Section 10A for export-oriented undertakings.
Details the particulars that must be filed with the return of income for claiming deductions under Section 10A(1B)(b).
Specifies the audit report format required to claim deductions under Section 10B by 100% export-oriented units.
Provides the form of report required for claiming deduction under Section 10BA for export of handmade goods or articles.
Outlines the procedure for exercising the option to apply income of trust/institution under Section 11.
Specifies the form and process for applying for registration of a charitable or religious trust or institution under Section 12A/12AB.
Mandates the audit report format for trusts or institutions claiming tax exemption under Section 11 and Section 12.
Lists the permissible forms or modes in which charitable or religious institutions can invest their funds.
Specifies the conditions and operational guidelines for electoral trusts to qualify for exemption under the Act.
Prescribes the method of valuation of assets transferred by a trust upon conversion into a non-charitable entity for taxation under Section 115TD.
Specifies which foreign projects qualify for deduction under Section 80HHB, relating to profits and gains from certain foreign projects.
Lays down the requirements for accommodation and amenities that must be provided by hotels to qualify for certain deductions or exemptions.
Designates the authority responsible for certifying the average number of rehabilitated employees in an industrial undertaking for tax benefits.
Mandates furnishing a detailed statement and certificate for claiming specified tax deductions or exemptions.
Specifies the authority competent to approve hotels for deductions under Section 80CC of the Income-tax Act.
Identifies the prescribed authority for approving universities or educational institutions of national eminence for Section 80G purposes.
Designates the authority for receiving separate accounts from trusts/institutions for providing relief to Gujarat earthquake victims.
Provides the criteria for specifying an association/institution eligible for notification under Section 80G(2)(c).
Designates the authority for approval of companies involved in scientific and industrial R&D for claiming deductions under Section 80-IA.
Prescribes the format of the audit report required to claim deduction under Section 80HH for new industrial undertakings in backward areas.
Specifies the format for the audit report required to claim deduction under Section 80HHA for small-scale industrial undertakings in rural areas.
Prescribes forms and designated authority for claiming deductions under Sections 80HHB (foreign projects), 80HHC (exports), and 80HHD (hotel and tourism industry).
Prescribes the format of the audit report required for claiming deductions under Sections 80-I, 80-IA, or 80-IB related to industrial undertakings and infrastructure development.
Designates the competent authority for approving hotels located in notified areas for claiming benefits under the Income-tax Act.
Specifies the authority for granting approval to companies engaged in scientific and industrial research and development for various tax benefits.
Lays down the methodology for computing profits from activities forming an integral part of a highway project for deduction under Section 80-IA.
Outlines the conditions under which industrial parks qualify for deduction under Section 80-IA(4)(iii), including area, investment, and infrastructure requirements.
Designates the authority to approve companies engaged in scientific research and development for tax deductions and benefits under various provisions.
Specifies the prescribed conditions that must be met to claim deductions under sub-section (8A) of Section 80-IB, applicable to scientific research and biotech companies.
Details the prescribed area, facilities, amenities, and audit report particulars required for claiming deduction under Section 80-IB(7A) and 80-IB(14)(da).
Prescribes the required facilities, area, and audit requirements for convention centres to be eligible under Section 80-IB(7B) and 80-IB(14)(aa).
Specifies the form of audit report required to claim deduction under sub-section (11B) of Section 80-IB, usually applicable to specific industries.
Provides the audit report format for businesses claiming deductions under sub-section (11C) of Section 80-IB, covering particular notified sectors.
Outlines the minimum area, seating capacity, number of halls, and other facilities required for convention centres to claim deductions under Section 80-ID.
Describes the methodology for computing capital employed in an industrial undertaking or a hotel, used in determining eligibility for certain deductions.
Details the computation method of capital employed in an industrial undertaking, ship, or hotel business for the purpose of claiming deductions under Section 80J.
Specifies the form of report to be submitted by an accountant to claim deduction under Section 80JJAA for employment generation in new undertakings.
Provides the form of certificate to be furnished by authors of books for claiming royalty-based deduction under Section 80QQB(3).
Designates the authority and certificate format for claiming deduction by patentees under Section 80RRB(2) for royalty income.
Specifies the report of the accountant to be filed for claiming deduction under Section 80LA(3), applicable to offshore banking units and IFSCs.
Specifies the procedure and required form for applying for registration of a partnership firm under the Income-tax Act for tax purposes.
Mandates the firm to notify the income-tax authorities about any changes in the constitution of the firm or its partners after registration.
Requires firms to submit a declaration each year confirming that there have been no changes affecting their registered status, to continue availing registration benefits.
Obligates firms to inform the tax authorities if any partner is found to be a benamidar, i.e., holding interest in the firm in a fictitious name or on behalf of another person.
Provides for the issuance of a certificate by the Assessing Officer confirming the registration of a firm upon satisfaction of prescribed conditions.
Specifies the rate of exchange to be used when deducting tax at source on income payable in foreign currency.
Requires employers to obtain detailed salary income particulars from employees to calculate TDS accurately.
Prescribes the format for submitting income details other than salaries for TDS purposes.
Mandates employees to furnish evidence to support tax deductions claimed under Section 192.
Allows senior citizens to file declarations to claim exemption from filing income tax returns if tax has been deducted by the bank.
Specifies the arrangements necessary for ensuring dividends are declared and paid within India.
Allows taxpayers to apply for certificates authorizing deduction of tax at lower or nil rates.
Permits shareholders to claim receipt of dividends without deduction of tax under specified conditions.
Prescribes conditions under which a certificate for no or reduced TDS may be granted for income other than dividends.
Details the procedure for certain exempt entities to apply for TDS exemption certificates.
Authorizes issuance of certificates for no or reduced tax deduction on dividend income.
Specifies the certificate format required for claiming deductions under certain sections like 80QQB, 80RRA, etc.
Outlines the certification process required for claiming deduction under Section 80-O.
Allows application for certificate to receive interest or similar income without TDS.
Prescribes the procedure and forms for applying for TDS exemption or lower deduction certificates.
Allows individuals to declare that their income is below the taxable threshold to receive payments without TDS.
Specifies the format of declaration under Section 194C for no or lower TDS on contractual payments.
Defines the timelines and method of depositing TDS and tax paid under Section 192(1A) to the Central Government.
Provides for credit of tax deducted at source to a person other than the shareholder in specific situations.
Mandates issuance of certificates for tax deducted from salaries or paid under Section 192(1A).
Specifies filing requirements for quarterly statements of TDS under Section 200(3).
Prescribes quarterly statement submission for tax collected at source under Section 206C(3).
Requires annual reporting of TDS, TCS or tax paid details.
Requires banks to maintain quarterly returns for time deposits under Section 206A.
Mandates the quarterly filing of returns related to specified transactions under Section 206A.
Prescribes the format of the certificate by an accountant for deductors under the first proviso to Section 201(1).
Requires employers to issue monthly TDS certificates for salaries paid.
Mandates trustees to file TDS statements for contributions paid under approved superannuation funds.
Allows submission of monthly returns in lieu of TDS certificates under certain conditions.
Requires employers to file an annual return of salaries paid and taxes deducted therefrom.
Specifies the persons responsible for furnishing information under Section 206.
Designates the authority responsible for administering Section 206 reporting requirements.
Mandates returns to be filed by persons responsible for TDS under Section 206.
Requires submission of returns regarding tax deduction in respect of non-residents.
Requires filing returns for interest paid to residents without deduction of tax.
Allows filing of TDS returns on computer media under Section 206(2).
Prescribes rules for providing credit of tax deducted at source for correct assessment.
Mandates furnishing of information by payers making payments to non-residents or foreign companies.
Provides relief from higher TDS rate for non-residents who fail to furnish PAN under specific conditions.
Allows buyers to furnish a declaration stating that the goods purchased are for manufacturing, processing, or production and not for trading, thereby exempting them from TCS under Section 206C(1).
Prescribes the timeline and manner for depositing tax collected at source under Section 206C to the credit of the Central Government.
Specifies the categories of buyers to whom the provisions of Section 206C(1D), relating to TCS on cash transactions, shall not apply.
Mandates issuance of a certificate by the seller to the buyer for tax collected at source as per Section 206C(5).
Specifies the form and manner in which prescribed returns relating to TCS must be furnished under Section 206C(5A).
Allows for submission of TCS returns on computer media for specified entities under Section 206C(5B).
Defines the authority designated for administering and receiving returns under Section 206C(5A).
Provides for application by buyers to the Assessing Officer for a certificate authorizing collection of tax at a lower rate.
Outlines the issuance of a certificate to the seller for collecting tax at a reduced rate from the buyer under specified circumstances.
Provides for the procedure and conditions under which credit for tax collected at source is granted to the buyer.
Prescribes the format and contents of the accountant's certificate required under the first proviso to Section 206C(6A) for certain default-related relaxations.
Provides the procedure for issuing a notice of demand for advance tax payable by an assessee under the provisions of the Income-tax Act.
Specifies the format and details to be included in the statement of advance tax payable and paid by an assessee.
Prescribes the manner in which an assessee must estimate their income and compute advance tax liability, especially when the original estimate requires revision.
Lays down conditions under which the Assessing Officer may waive or reduce interest payable under sections 234A, 234B, or 234C in cases involving genuine hardship or other prescribed circumstances.
Specifies the procedure for claiming credit for tax paid under section 199, such as TDS, TCS, or advance tax, in the return of income. The rule ensures that proper evidence is furnished by the assessee to support such claims.
Provides special procedures and conditions for the payment of tax by certain companies, including those opting for concessional tax regimes under specific sections like 115BA, 115BAA, or 115BAB.
Prescribes the method and special conditions for LLPs opting for concessional tax regimes, ensuring compliance with requirements under relevant provisions of the Income-tax Act.
Outlines the determination and treatment of consideration received by a company for the issue of shares, particularly for fair market value purposes under section 56(2)(viib).
Prescribes the method for valuing specified securities or sweat equity shares which are equity shares in the company, for the purpose of calculating fringe benefit tax under section 115WC.
Specifies the valuation rules for determining the fair market value of specified securities that are not equity shares, for fringe benefit tax computation under section 115WC.
Details the conditions under which certain employee benefits and services shall be excluded from the valuation of fringe benefits under section 115WB(2)(B)(iii).
Clarifies that the provisions relating to fringe benefit tax cease to apply from the assessment year 2010-11 onwards, following the withdrawal of the levy.
Outlines the procedure for claiming refunds by deductors in case of excess payment of tax or error in TDS remittance, under the provisions of section 239A of the Income-tax Act.
Specifies the procedure and conditions under which an assessee can apply for a refund of excess tax paid under the provisions of the Income-tax Act. It includes the form to be used, the timeline for making the claim, and the authorities responsible for processing the refund.
Specifies the income-tax authority responsible for issuing tax clearance certificates required under the Act, particularly in cases involving foreign transactions or certain high-value transfers.
Details the format and content of forms and certificates that must be submitted to the tax authorities under section 230, which deals with individuals leaving India or transferring assets.
Mandates the production of a tax clearance certificate before specified transactions or events, ensuring that outstanding tax dues are settled beforehand.
Prescribes the procedure and form to be used when applying for a tax clearance certificate required for registering documents involving significant financial transactions or property transfers.
Outlines the conditions under which a tax clearance certificate may be granted or refused, including the authority's power to reject applications due to non-compliance or pending tax dues.
Specifies the form and manner in which an assessee must apply for settlement of a case before the Settlement Commission, along with the requirement to inform the Assessing Officer about such an application.
Prescribes the details and information to be disclosed mandatorily in the application for settlement, including particulars of income, manner of computation, and tax paid.
Specifies the fee payable by an assessee for obtaining copies of reports or documents submitted or relied upon in proceedings before tax authorities or the Settlement Commission.
Lays down the procedure for exercising the option to withdraw an application filed before the Settlement Commission under section 245M(1), including the prescribed form and time limit.
Provides for the constitution of the Dispute Resolution Committee (DRC) under section 245MA, including details about its composition, appointment of members, and jurisdiction.
Prescribes the form, manner, and timeline for eligible assessees to file an application before the DRC for resolving disputes under the Income-tax Act.
Specifies the conditions and powers of the DRC to reduce or waive penalties and/or grant immunity from prosecution in deserving cases where disputes are resolved amicably.
Defines key terms used in the rules related to the functioning and procedures of the Dispute Resolution Committee under section 245MA.
Specifies the form and manner in which an assessee must file an appeal to the Commissioner (Appeals) under section 246A of the Income-tax Act.
Prescribes the acceptable methods of serving notices, summons, or other communication by the tax authorities or appellate bodies under the Act.
Specifies the circumstances under which an assessee may produce additional evidence before the appellate authorities that was not produced during the original assessment.
Details the prescribed forms for filing an appeal or cross-objection before the Income-tax Appellate Tribunal (ITAT) under the provisions of the Act.
Specifies the form and procedure for making an application to the High Court for reference of a case involving a question of law arising from the ITAT's order.
Specifies the manner and form in which an application must be made by an assessee to give effect to the terms of any agreement entered into by the Central Government for the avoidance of double taxation or exchange of information.
Prescribes the detailed procedure for handling applications involving bilateral or multilateral Advance Pricing Agreements (APAs), including the roles of the Competent Authority and mutual agreement procedures.
Outlines the responsibilities of the Competent Authority of India in implementing decisions under agreements with other countries, and details the steps for giving effect to such decisions, including the role of the Assessing Officer.
Prescribes the form and manner for filing an appeal to the Commissioner (Appeals), including electronic filing procedures and accompanying documents.
Specifies the accepted modes of serving notices, requisitions, or orders, including delivery by hand, registered post, or electronic means.
Lays down conditions under which an assessee may produce additional evidence before appellate authorities, and circumstances where such evidence may be accepted.
Defines the form and content requirements for filing an appeal or cross-objections to the Income Tax Appellate Tribunal.
Specifies the procedure and format for filing an application to refer a question of law arising out of an Appellate Tribunal order to the High Court.
Specifies the format and content of the notice of demand issued by the Assessing Officer to the assessee under various provisions of the Income-tax Act.
Relates to the submission of estimates of advance deposit to be made by the assessee towards discharge of income-tax liabilities for the relevant assessment year.
Specifies the format and procedure for submitting the estimate of annuity deposit for the assessment year 1964-65, as was required under earlier provisions of the Act.
Rules relating to persons entitled to appear before income-tax authorities on behalf of the assessee.
Rules governing approval and operation of recognised provident funds.
Rules relating to superannuation funds approved under the Income-tax Act.
Rules for the operation and approval of gratuity funds under section 10(25)(iv).
Various administrative and procedural provisions.
The Wealth-tax Rules, 1957 were formulated under the Wealth-tax Act, 1957 to provide procedural and administrative guidelines for the assessment, valuation, filing, and recovery related to wealth tax in India. Although the levy of wealth tax was abolished from the assessment year 2016–17, these rules provide historical insight into the administration of the tax.
Rules 3 to 20 lay down methods for valuation of different types of assets:
While no longer in active use, the Wealth-tax Rules, 1957 provide a structured framework for asset valuation and tax assessment, which continues to influence other direct and indirect tax valuations under Indian law.
The Income Declaration Scheme (IDS), 2016 was introduced under the Finance Act, 2016, and the corresponding Rules were framed to facilitate the voluntary declaration of undisclosed income or assets and provide immunity from prosecution under various tax laws. The scheme was in force from 1st June 2016 to 30th September 2016.
The IDS, 2016 was a landmark step in combating black money and bringing non-compliant taxpayers into the tax net. It laid the foundation for future disclosure schemes and reforms in tax compliance enforcement.
