INCOME RULES 2008

INDEX

PART I

PRELIMINARY

1. Short title and commencement

2. Definitions

PART II

DETERMINATION OF INCOME

2A. Limits for the purposes of section 10(13A)

2B. Conditions for the purpose of section 10(5)

2BA. Guidelines for the purposes of section 10(10C)

2BB. Prescribed allowances for the purposes of clause (14) of section 10

2BBA. Circumstances and conditions for the purposes of clause (19) of section 10

2BC. Amount of annual receipts for the purposes of sub-clauses (iiiad) and (iiiae) of clause (23C) of section 10

2C. Guidelines for approval under sub-clauses (iv) and (v) of clause (23C) of section 10

2CA. Guidelines for approval under sub-clauses (vi) and (via) of clause (23C) of section 10

2D. Guidelines for approval under clause (23F) of section 10

2DA. Guidelines for approval under clause (23FA) of section 10

2E. Guidelines for approval under clause (23G) of section 10

3. Valuation of perquisites

3A. Exemption of medical benefits from perquisite value in respect of medical treatment of prescribed diseases or ailments in hospitals approved by the Chief Commissioner

4. Unrealized rent

5. Depreciation

5A. Form of report by an accountant for claiming deduction under section 32(1)(iia)

5AA]. Prescribed authority for investment allowance

5AB. Report of audit of accounts to be furnished under section 32AB(5)

5AC. Report of audit of accounts to be furnished under section 33AB(2)

5AD. Report of audit of accounts to be furnished under section 33ABA(2)

5B Development rebate

5C. Guidelines, form and manner in respect of approval under clause (ii) and clause (iii) of sub-section (1) of section 35

5D. Conditions subject to which approval is to be granted to a Scientific Research Association under clause (ii) of sub-section (1) of section 35

5E. Conditions subject to which approval is to be granted to a University, College or other Institution under clause (ii) and clause (iii) of sub-section (1) of section 35

6. Prescribed authority for expenditure on scientific research

6A. Omitted

6AA. Omitted

6AAA Prescribed authority for the purposes of sections 35CC and 35CCA

6AAB. Omitted

6AAC. Prescribed authority for the purposes of section 35CCB

6AB. Form of audit report for claiming deductions under sections 35D and 35E

6ABA. Computation of aggregate average advances for the purposes of clause (viia) of sub-section (1) of section 36

6ABB. Form of report for claiming deduction under clause (xi) of sub-section (1) of section 36

6DD. Cases and circumstances in which payment in a sum exceeding twenty thousand rupees may be made otherwise than by an

account payee cheque drawn on a bank or account payee bank draft

6DDA. Conditions that a stock exchange is required to fulfil to be notified as a recognised stock exchange for the purposes of clause (d)

of proviso to clause (5) of section 43

6DDB. Notification of a recognised stock exchange for the purposes of clause (d) of proviso to clause (5) of section 43

6E. Limits of reserve for unexpired risks

6EA. Conditions for the applicability of section 43D

6EB. Categories of bad or doubtful debts in the case of a public company under clause (b) of section 43D

6F. Books of account and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain

professions

6G. Report of audit of accounts to be furnished under section 44AB

6GA. Form of report of audit to be furnished under sub-section (2) of section 44DA

6H. Form of report of an accountant under sub-section (3) of section 50B

7. Income which is partially agricultural and partially from business

7A. Income from the manufacture of rubber

7B. Income from the manufacture of coffee

8. Income from the manufacture of tea

8A. Conditions for the grant of development allowance

8B. Guidelines for notification of zero coupon bond

8C. Computation of pro rata amount of discount on a zero coupon bond for the purpose of clause (iiia) of sub-section (1) of section

36

9. Royalties or copyright fees, etc., for literary or artistic work

9A. Deduction in respect of expenditure on production of feature films

9B. Deduction in respect of expenditure on acquisition of distribution rights of feature films

9C. Conditions for carrying forward or set-off of accumulated loss and unabsorbed depreciation allowance in case of amalgamation

10. Determination of income in the case of non-residents

10A. Meaning of expressions used in computation of arm's length price

10B. Determination of arm's length price under section 92C

10C. Most appropriate method

10D. Information and documents to be kept and maintained under section 92D

10E. Report from an accountant to be furnished under section 92E

11. Omitted

11A. Medical authority for certifying autism, cerebral palsy and multiple disabilities and certificate to be obtained from the medical authority for the purposes of deduction under section 80DD and section 80U

11AA. Requirements for approval of an institution or fund under section 80G

11B. Conditions for allowance for deduction under section 80GG

11C. Prescribed fields for the purposes of deduction in respect of remuneration received from foreign employers or Indian concerns under section 80RRA

11D. Omitted

11DD. Specified diseases and ailments for the purposes of deduction under section 80DDB

11E. Omitted

11EA. Guidelines for specifying industrially backward districts for the purpose of deduction under

11F. General

11G. Composition of the National Committee

11H. Headquarters and Secretariat

11-I. Functions

11J. Guidelines for approval of associations and institutions

11K. Guidelines for recommending projects or schemes

11L. Application for approval of an association or institution or for recommendation of a project or scheme by the National Committee

11M. Procedure before the National Committee

11MA. Form of report by an approved association or institution under clause (ii) of sub-section (4) of section 35AC

11MAA. Form of report by public sector company or local authority or association or institution, which is carrying out a notified eligible project or scheme, under clause (ii) of sub-section (5) of section 35AC

11N. Other provisions11-O. Certificate of payment or expenditure in respect of eligible projects or schemes notified under section 35AC

11-O. Certificate of payment or expenditure in respect of eligible projects or schemes notified under section 35AC

11P. Application for exercising or renewing the option for tonnage tax scheme

11Q. Computation of deemed tonnage

11R. Incidental activities for purposes of relevant shipping income

11S. Computation of average of net tonnage for charter-in of tonnage

11T. Form of report of an accountant under clause (ii) of section 115VW

PART III

ASSESSMENT PROCEDURE

12. Return of income and return of fringe benefits

12A. Preparation of return by authorized representative

12B. Statement under sub-section (3A) of section 115R

12C. Statement under sub-section (2) of section 115U

13. Omitted

14. Form of verification under section 142

14A. Form of audit report under section 142(2A)

14B. Guidelines for the purposes of determining expenses for audit

15. Notice of demand for regular assessment, etc.

PART IIIA

AVOIDANCE OF REPETITIVE APPEALS

16. Declaration under section 158A

PART IV

TAX EXEMPTIONS [AND RELIEFS]

16A. Prescribed authority for approving any institution or body established for scientific research

16B. Prescribed authority for the purposes of clauses (8A) and (8B) of section 10

16C. Requirements for approval of a fund under section 10(23AAA)

16CC. Report of audit of accounts of a fund or trust or institution, etc.

16D. Form of Report for claiming deduction under section 10A

16DD. Form of particulars to be furnished along with return of income for claiming deduction under clause (b) of sub-section (1B) of section 10A

16E. Form of Report for claiming deduction under section 10B

16F. Form of report for claiming deduction under section 10BA

17. Notice for accumulation of income by charitable or religious trust or institution or association referred to in clauses (21) and (23) of section 10

17A. Application for registration of charitable or religious trusts, etc.

17B. Audit report in the case of charitable or religious trusts, etc.

17C. Forms or modes of investment or deposits by a charitable or religious trust or institution

17D. Prescribed foreign projects for the purposes of deduction in respect of profits and gains from projects outside India under section 80HHB

18. Omitted

18A. Omitted

18AA. Omitted

18AAA. Prescribed authority for approval of a University or any educational institution of national eminence for the purpose of section 80G

18AAAA. Prescribed authority for the purpose of receiving separate accounts from trusts or funds or institutions for providing relief to the victims of earthquake in Gujarat

18AAAAA. Guidelines for specifying an association or institution for the purposes of notification under clause (c) of sub-section (2) of section 80G

18AAB. Prescribed authority for approval of companies engaged in Scientific and Industrial Research and Development for the purposes of section 80-IA

18B. Form of audit report for claiming deduction under section 80HH

18BB. Form of audit report for claiming deduction under section 80HHA

18BBA. [Form of reports for claiming deduction under section 80HHB or under section 80HHC or under section 80HHD and prescribed authority under section 80HHD]

18BBB. Form of audit report for claiming deduction under section 80-I or section 80-IA or section 80-IB or section 80-IC]

18BBC. Prescribed authority for approval of hotels located in certain areas

18BBD. Prescribed authority for approval of companies carrying on scientific and industrial research and development

18BBE. Computation of profits of certain activities forming integral part of a highway project for the purpose of section 80-IA

18C. Eligibility of Industrial Parks for benefits under section 80-IA(4)(iii).

18D. Prescribed authority for approval of companies carrying on scientific research and development

18DA. Prescribed conditions for deduction under sub-section (8A) of section 80-IB

18DB. Prescribed area, facilities and amenities for multiplex theatres and particulars of audit report, for deduction under sub-section (7A) and clause (da) of sub-section (14) of section 80-IB

18DC. Prescribed area, facilities and amenities for convention centers and particulars of audit report, for deduction under sub-section (7B) and clause (aa) of sub-section (14) of section 80-IB

18DD. Form of report for claiming deduction under sub-section (11B) of section 80-IB

18DE. Prescribed area, minimum seating capacity, facilities and amenities for convention centers; minimum number of convention halls in the convention centers; and particulars of audit report, for deduction under section 80-ID

19. Omitted

19AB. Form of report for claiming deduction under section 80JJA

19AC. Form of certificate to be furnished under sub-section (3) of section 80QQB

20. Guidelines for approval under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88

20A. Guidelines for approval[under clause (xx) of sub-section (2) of section 80C or] under clause (xvii) of sub-section (2) of section 88

20AB. Evidence of payment of security transaction tax for claiming deduction under section 88E

21. Omitted

21A. Relief when salary is paid in arrears or in advance, etc.

21AA. Furnishing of particulars for claiming relief under section 89(1)

21B. Omitted

PART V

REGISTRATION OF FIRMS

22. Application for registration of a firm

23. Intimation regarding subsequent changes in constitution, etc.

24A. Communication regarding partner who is a benamidar

25. Certificate of registration

PART VI

DEDUCTION OF TAX AT SOURCE

26. Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency

26A. Furnishing of particulars of income under the head 'Salaries

26B. Statement of particulars of income under heads of income other than "Salaries" for deduction of tax at source

27. Prescribed arrangements for declaration and payment of dividends within India

28. Application for certificates for deduction of tax at lower rates

28A. Omitted

28AA. Certificate of no deduction of tax or deduction at lower rates from income other than dividends

28AB. Certificate of no deduction of tax in case of certain entities

29. Certificate of no deduction of tax or deduction at lower rates from dividends

29A. Form of certificate to be furnished along with the return of income under sub-section (4) of section 80QQB, sections 80R, 80RR

and 80RRA and sub-section (3) of section 80RRB and the prescribed authority for the purposes of sub-section (4) of section

80QQB and sub-section (3) of section 80RRB

29AA. Certificate under second proviso to section 80-O

29B. Application for certificate authorizing receipt of interest and other sums without deduction of tax

29C. Declaration by person claiming receipt of certain incomes without deduction of tax

29D. Declaration under section 194C by a sub-contractor

30. Time and mode of payment to Government account of tax deducted at source

30A. Omitted

31. Certificate of tax deducted at source

31A. Quarterly statement of deduction of tax under sub-section (3) of section 200

31AA. Quarterly statement of collection of tax under sub-section (3) of section 206C

31AB. Annual statement of tax deducted or collected or paid

31AC. Maintenance of particulars of time deposits by a banking company for furnishing quarterly return under section 206A

31ACA. Quarterly return under section 206A

33. Statement of deduction of tax from contributions paid by the trustees of an approved superannuation fund

34. Omitted by the Income-tax (6th Amndt.) Rules, 1988, w.e.f. 12-7-1988.]

35. Omitted by the Income-tax (6th Amndt.) Rules, 1988, w.e.f. 12-7-1988.]

36. Prescribed persons for section 206

36A. Prescribed authority for furnishing of returns regarding tax deducted at source

37. Prescribed returns regarding tax deducted at source under section 206

37AA. Omitted

37B. Returns regarding tax deducted at source on computer media under sub-section (2) of section 206

PART VIA

COLLECTION OF TAX AT SOURCE

37C. Declaration by a buyer for no collection of tax at source under section 206C(1A)

37CA. Time and mode of payment to Government account of tax collected at source under section 206C

37D. Certificate for collection of tax at source under section 206C(5)

37E. Prescribed returns regarding tax collected at source under section 206C(5A)

37EA. Returns regarding tax collected at source on computer media under sub-section (5B) of section 206

37F. Prescribed authority for returns regarding tax collected at source

37G. Application for certificate for collection of tax at lower rates under sub-section (9) of section 206C

37H. Certificate for collection of tax at lower rates from buyer under sub-section (9) of section 206C

PART VII

PAYMENT OF ADVANCE TAX

38. Notice of demand

38A. Omitted

39. Estimate of advance tax

40. Waiver of interest

PART VIIA

40A. Omitted

PART VIIB

40B. Special provision for payment of tax by certain companies

PART VIIC

FRINGE BENEFIT TAX

40C. Valuation of specified security or sweat equity share being a share in the company

40D. Valuation of specified security not being an equity share in the company

PART VIII

REFUNDS

41. Refund claim

PART IX

TAX CLEARANCE CERTIFICATES

42. Prescribed authority for tax clearance certificates

43. Forms and certificates for the purposes of sub-sections (1) and (1A) of section 230

44. Production of certificate

44A. Application for tax clearance certificate for registration of documents in certain cases

44B. Grant of tax clearance certificate or refusal

PART IXA

SETTLEMENT OF CASES

44C. Form of application for settlement of case

44CA. Disclosure of information in the application for settlement of cases

44D. Fee for furnishing copy of report

CHAPTER IXB

ADVANCE RULINGS

44E. Form of application for obtaining an advance ruling

44F. Certification of copies of the advance rulings pronounced by the Authority

PART IXC

MUTUAL AGREEMENT PROCEDURE

44G. Application for giving effect to the terms of any agreement under clause (h) of sub-section (2) of section 295

44H. Action by the Competent Authority of India and procedure for giving effect to the decision under the agreement

PART X

APPEALS

45. Form of appeal

46. Mode of service

46A. Production of additional evidence before the Deputy Commissioner (Appeals)] [and Commissioner (Appeals)]

47. Form of appeal and memorandum of cross-objections to Appellate Tribunal

48. Form of application for reference to High Court

PART XA

48A. Omitted

PART XB

ACQUISITION OF IMMOVABLE PROPERTIES UNDER CHAPTER XXA[40]

48D. Jurisdiction of competent authorities

48DD. Statement to be registered with the competent authority under section 269AB

48E. Manner of publication of notice for acquisition

48F. Form of appeal to the Appellate Tribunal [42]

48G. Statement to be furnished in respect of transfers of immovable property

48H. Form of fortnightly return to be forwarded by registering officer to the competent authority

[43][PART XC

PURCHASE OF IMMOVABLE PROPERTIES UNDER CHAPTER XXC

48-I. Rate of interest for determination of discounted value of consideration [44]

48J. Jurisdiction of appropriate authority

48K. Value of immovable property

48L. Statement to be furnished under section 269UC(3)

PART XI

AUTHORISED REPRESENTATIVES

49. Definitions

50. Accountancy examinations recognized

51. Educational qualifications prescribed

52. Prescribed authority or section 288(5)(b)

53. Register of income-tax practitioners

54. Application for registration

55. Certificate of registration

56. Cancellation of certificate

57. Cancellation of certificate obtained by misrepresentation

58. Removal of name of authorised income-tax practitioner who is insolvent or on whom penalty has been imposed

59. Prescribed authority to order an inquiry

60. Charge-sheet

61. Inquiry Officer

62. Proceedings before Inquiry Officer

63. Order of the prescribed authority

64. Procedure if no Inquiry Officer appointed

65. Change of Inquiry Officer

66. Powers of prescribed authority and Inquiry Officer

PART XII

RECOGNISED PROVIDENT FUNDS

67. Investment of fund moneys

67A. Nomination

68. Circumstances in which withdrawals may be permitted

69. Conditions for withdrawal for various purposes

70. Second withdrawal

71. Repayment of amounts withdrawn

71A. Certain rules not to apply

72. Amount withdrawn but not repaid may be deemed as income

73. Withdrawal within twelve months before retirement

74. Accounts

75. Limits for contributions

76. Penalty for assigning or creating a charge on beneficial interest

77. Application for recognition

78. Order of recognition

79. Withdrawal of recognition

80. Exemption from tax when recognition withdrawn

81. Appeal

PART XIII

APPROVED SUPERANNUATION FUNDS

82. Definitions

83. Establishment of fund and trust

84. Conditions regarding trustees

85. Investment of fund moneys

86. Admission of directors to a fund

87. Ordinary annual contributions

88. Initial contributions

89. Scheme of insurance or annuity

90. Commutation of annuity

91. Beneficiary not to have any interest in insurance and employer not to have any interest in fund's moneys

92. Penalty if employee assigns or charges interest in fund

93. Arrangements on winding-up, etc., of business

94. Arrangements for winding-up, etc., of fund

95. Application for approval

FORM OF VERIFICATION

96. Amendment of rules, etc., of fund

97. Appeal

PART XIV

APPROVED GRATUITY FUNDS

98. Definitions

99. Establishment of fund and trust

100. Conditions regarding trustees

101. Investment of fund moneys

101A. Nomination

102. Admission of directors to a fund

103. Ordinary annual contributions

104. Initial contributions

105. Penalty if employee assigns or charges interest in fund

106. Employer not to have interest in fund moneys

107. Arrangements for winding-up, etc., of business

108. Arrangements for winding up of the fund

109. Application for approval

110. Amendment of rules, etc., of fund

111. Appeal

PART XV

MISCELLANEOUS

111A. Omitted

111AA. Conditions for reference to Valuation Officers

111AB. Form of report of valuation by registered valuer

111B. Publication and circulation of Board's order

112. Search and seizure

112A. Inquiry under section 132

110. Amendment of rules, etc., of fund

111. Appeal

PART XV

MISCELLANEOUS

111A. Omitted

111AA. Conditions for reference to Valuation Officers

111AB. Form of report of valuation by registered valuer

111B. Publication and circulation of Board's order

112. Search and seizure

112A. Inquiry under section 132

112B. Release of articles under section 132(5)

112C. Release of remaining assets

112D. Requisition of books of account, etc.

112E. Form of information under section 133B

113. Disclosure of information respecting assesses

114. Application for allotment of a permanent account number

114A. Application for allotment of a tax deduction and collection account number[29]

114AA. Application for allotment of a tax collection account number

114B. All documents pertaining to the transactions in relation to which permanent account number [* * *] to be quoted for the purpose of clause (c) of sub-section (5) of section 139A

114C. Class or classes of persons to whom provisions of section 139A shall not apply

114D. Time and manner in which persons referred to in sub-rule (2) of rule 114C, shall furnish the copies of Form No. 60 and Form No. 61

114E. Furnishing of Annual Information Return

115. Rate of exchange for conversion into rupees of income expressed in foreign currency[58]

115A. Rate of exchange for conversion of rupees into foreign currency and reconversion of foreign currency into rupees for the purpose of computation of capital gains under the proviso to clause (a) of sub-section (1) of section 48 of the Income-tax Act, 1961

116. Omitted

117. Omitted

117A. Reduction or waiver of interest payable under section 139[70]

117B. Form of statement under section 222 or section 223

117C. Tax Recovery Officer to exercise or perform certain powers and functions of an Assessing Officer

118. Omitted

119. Omitted

119A. Procedure to be followed in calculating interest[83]

120. Omitted

121. Omitted

121A. Form of statement to be furnished by producer of cinematograph films

122. Omitted

123. Application for obtaining certified copies of certain notices

124. Fees for obtaining certified copy of notice

125. Omitted