Legal Library: Rules

Procedural and technical Income Tax Rules, 1962 (Updated with Finance Act 2025).

Exemptions

Rule 2A - Limits for HRA Exemption

View Section 10(13A)

The amount of any special allowance which an assessee receives from his employer by way of house rent allowance shall be exempt from tax to the least of the following:

  1. Actual HRA received from employer.
  2. Rent paid in excess of 10% of salary.
  3. 50% of salary (for Metro cities) or 40% of salary (for non-Metro cities).
Depreciation Block

Rule 5 - Depreciation Rates

View Section 32

Depreciation shall be calculated at the percentage specified in the second column of the Table of rates in Appendix I. These rates apply to the "written down value" of the block of assets.

  • Residential Buildings: 5%
  • Office Machinery/Computers: 40%
  • General Furniture: 10%
Audit Compliance

Rule 6G - Forms of Audit Report

View Section 44AB

The report of audit of the accounts of a person required to be furnished under section 44AB shall,—

  • Form No. 3CA: (for person carrying business/profession required by any other law to get accounts audited).
  • Form No. 3CB: (for person carrying business/profession NOT required by any other law).
  • Form No. 3CD: The statement of particulars required to be furnished.
Administrative

Rule 114AAA - Consequences of Inoperative PAN

View Section 139AA

Where a person, whose PAN has become inoperative, is required to quote, intimate or furnish his PAN, it shall be deemed that he has not quoted, intimated or furnished the PAN. Consequently, all provisions of the Act for non-quoting (like higher TDS 20%) shall apply.

Interest Calculation

Rule 119A - Procedure for Interest Calculation

View Section 201

In calculating of interest payable, the amount on which interest is payable shall be rounded off to the nearest multiple of one hundred rupees and for this purpose any fraction of one hundred rupees shall be ignored.