Section 533: power to make rules

General rule-making power

"The Board may, subject to the control of the Central Government, by notification, make rules for carrying out the purposes of this Act."

Illustrative matters rules may cover

Without limiting the general power, sub-section (2) lists specific matters the rules may address, including:

• Ascertainment and determination of any class of income
• How income is arrived at where it is derived partly from agriculture and partly from business, for persons residing outside India, and for non-resident operations and transactions
• Valuation of perquisites chargeable to tax
• The percentage on the written down value that may be allowed as depreciation for buildings, machinery, plant or furniture
• The time, form and manner for applying for a Permanent Account Number, and the transactions requiring it to be quoted
• Documents, statements, receipts, certificates or reports that need not be furnished with the return but must be produced before the Assessing Officer on demand, including for returns filed in electronic form
• The form of the tax audit or inventory valuation report
• Remuneration and procedure for the Approving Panel
• The procedure for giving effect to agreements for relief from, or avoidance of, double taxation, and for granting foreign tax credit under sections 159 or 160
• The form, manner and fees for applications, claims, returns, appeals and cross-objections
• The procedure for calculating interest payable by or to assessees, including rounding off periods and ignoring petty amounts
• Any other matter which the Act requires, or allows, to be prescribed

Estimating income that cannot be definitely ascertained

Where income covered under sub-section (2)(b) cannot be definitely ascertained, or only with an unreasonable amount of trouble and expense, the rules may prescribe methods for estimating such income, and, for income derived partly from agriculture and partly from business, specify the proportion deemed liable to tax. An assessment based on such estimate or proportion is deemed duly made under the Act.

Retrospective rules

The rule-making power includes the power to give rules retrospective effect from a date not earlier than the commencement of the Act. Unless expressly, or by necessary implication, permitted, no retrospective rule can prejudicially affect the interests of assessees.

Frequently asked questions