Section 295:
Power to make rules.
(1) The Board may, subject to the control of the Central Government,
by notification in the Gazette of India, make rules for the whole or any part of India for carrying out the
purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters:—
(a) the ascertainment and determination of any class of income;
(b) the manner in which and the procedure by which the income shall be arrived at in the case
of—
(i) income derived in part from agriculture and in part from business;
(ii) persons residing outside India;
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(iii) an individual who is liable to be assessed under the provisions of sub-section (2)
of section 64;
(c) the determination of the value of any perquisite chargeable to tax under this Act in such
manner and on such basis as appears to the Board to be proper and reasonable;
(d) the percentage on the written down value which may be allowed as depreciation in respect of
buildings, machinery, plant or furniture;
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(dd) the extent to which, and the conditions subject to which, any expenditure referred to in
sub-section (3) of section 37 may be allowed;
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(dda) the matters specified in sub-sections (2) and (3) of section 44AA;
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(e) the conditions or limitations subject to which any payment of rent made by an assessee
shall be deducted under section 80GG;
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(ee) the matters specified in Chapter X-A;
(eea) the cases, the nature and value of assets, the limits and heads of expenditure and the
outgoings, which are required to be prescribed under sub-section (6) of section 139;
(eeb) the time within which any person may apply for the allotment of a permanent account
number, the form and the manner in which such application may be made and the particulars which
such application shall contain and the transactions with respect to which permanent account numbers
shall be quoted on documents relating to such transactions under section 139A;
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(eeba) the documents, statements, receipts, certificates or audited reports which may not be
furnished along with the return but shall be produced before the Assessing Officer on demand
under section 139C;
(eebb) the class or classes of persons who shall be required to furnish the return of income in
electronic form; the form and the manner of furnishing the said return in electronic form; documents,
statements, receipts, certificates or reports which shall not be furnished with the return in electronic
form and the computer resource or electronic record to which such return may be transmitted
under section 139D;
(eec) the form of the report of audit and the particulars which such report shall contain under subsection (2A) of section 142;
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(eed) remuneration of Chairperson and members of the Approving Panel under sub-section (18)
and procedure and manner for constitution of, functioning and disposal of references by, the
Approving Panel under sub-section (21) of section 144BA;
(f) the manner in which and the period to which any such income as is referred to in section
180 may be allocated;
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(fa) the form and manner in which the information relating to payment of any sum may be
furnished under sub-section (6) of section 195;
(g) the authority to be prescribed for any of the purposes of this Act;
(h) the procedure for giving effect to the terms of any agreement for the granting of relief in
respect of double taxation or for the avoidance of double taxation which may be entered into by the
Central Government under this Act;
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(ha) the procedure for granting of relief or deduction, as the case may be, of any income-tax
paid in any country or specified territory outside India, under section 90 or section 90A or section 91,
against the income-tax payable under this Act;
(i) the form and manner in which any application, claim, return or information may be made or
furnished and the fees that may be levied in respect of any application or claim;
(j) the manner in which any document required to be filed under this Act may be verified;
(k) the procedure to be followed on applications for refunds;
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(kk) the procedure to be followed in calculating interest payable by assessees or interest payable
by Government to assessees under any provision of this Act, including the rounding off of the period
for which such interest is to be calculated in cases where such period includes a fraction of a month,
and specifying the circumstances in which and the extent to which petty amounts of interest payable
by assessees may be ignored;
(l) the regulation of any matter for which provision is made in section 230;
(m) the form and manner in which any appeal or cross-objection may be filed under this Act, the
fee payable in respect thereof and the manner in which intimation of any such order as is referred to
in clause (c) of sub-section (2) of section 249 may be served;
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(mm) the circumstances in which, the conditions subject to which and the manner in which, the
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*** or the Commissioner (Appeals) may permit an appellant to produce evidence which he did not
produce or which he was not allowed to produce before the 13
Assessing Officer;
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(mma) the form in which the statement under section 285B shall be delivered to the 13
Assessing
Officer;
(n) the maintenance of a register of persons other than legal practitioners or accountants as
defined in sub-section (2) of section 288 practising before income-tax authorities and for the
constitution of and the procedure to be followed by the authority referred to in sub-section (5) of that
section;
(o) the issue of certificate verifying the payment of tax by assessees;
(p) any other matter which by this Act is to be, or may be, prescribed.
(3) In cases coming under clause (b) of sub-section (2), where the income liable to tax cannot be
definitely ascertained, or can be ascertained only with an amount of trouble and expense to the assessee
which in the opinion of the Board is unreasonable, the rules made under this section may—
(a) prescribe methods by which an estimate of such income may be made; and
(b) in cases coming under sub-clause (i) of clause (b) of sub-section (2) specify the proportion of
the income which shall be deemed to be income liable to tax,
and an assessment based on such estimate or proportion shall be deemed to be duly made in accordance
with the provisions of this Act.
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(4) The power to make rules conferred by this section shall include the power to give retrospective
effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and,
unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect
shall be given to any rule so as to prejudicially affect the interests of assessees.
Notes:
1. Ins. by Act 42 of 1970, s. 55 (w.e.f. 1-4-1971).
2. Ins. by Act 5 of 1964, s. 47 (w.e.f. 1-4-1964).
3. Ins. by Act 41 of 1975, s. 79 (w.e.f. 1-4-1976).
4. Ins. by Act 41 of 1975, s. 79 (w.e.f. 1-4-1976).
5. Clasue (ee) renumbered as clause (e) thereof by Act 17 of 2013, s. 59 (w.e.f. 1-4-2016). Earlier clause (e) omitted by
Act 18 of 2005, s. 64 (w.e.f. 1-4-2006) which was amended by Act 20 of 1967, s. 33 and the Third Schedule (w.e.f. 1-4-
1968).
6. Ins. by s. 59, ibid. (w.e.f. 1-4-2016).
7. Ins. by Act 22 of 2007, s. 79 (w.r.e.f. 1-6-2006).
8. Ins. by Act 18 of 2008, s. 58 (w.e.f. 1-4-2008).
9. Ins. by Act 20 of 2015, s. 80 (w.e.f. 1-6-2015).
10. Ins. by Act 42 of 1970, s. 55 (w.e.f. 1-4-1971).
11. Ins. by Act 16 of 1972, s. 41 (w.e.f. 1-4-1972).
12. The words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, s. 65 (w.e.f. 1-10-1998). Earlier the
words “Deputy Commissioner (Appeals)” were substituted by Act 4 of 1988, s. 2, for “Appellate Assistant
Commissioner” (w.e.f. 1-4-1988) and the words “or the Commissioner (Appeals)” were inserted by Act 29 of 1977, s. 39
and the Fifth Schedule (w.e.f. 10-7-1978).
13. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).
14. Ins. by Act 41 of 1975, s. 79 (w.e.f. 1-4-1976).
15. Ins. by Act 26 of 1974, s. 14 (w.e.f. 18-8-1974).