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CS Professional · Advanced Direct Tax Laws and Practice · Income Tax Implication on Specified Transactions

Under section 533(2) of the Income-tax Act, 2025 (June 2027 session), the rule-making power is stated to be 'without prejudice to the generality' of section 533(1). Which inference is correct?

The listed matters are illustrative, not exhaustive. Because section 533(2) operates without prejudice to the generality of section 533(1), the Board can still make rules on other matters needed to carry out the purposes of the Act, in addition to the specified items.

  1. AThe listed matters are illustrative, and the Board may also make rules on other matters for carrying out the Act's purposesCorrect
  2. BThe Board may make rules only on the listed matters
  3. CThe listed matters override any rules made under sub-section (1)
  4. DThe Board may use the power only for matters in clause (zb)

Explanation

The words 'in particular, and without prejudice to the generality' mean the list gives examples and does not cut down the general power in section 533(1). Option B wrongly treats the list as exhaustive. Clause (zb) merely covers other matters the Act says may be prescribed.

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