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

Under the Income-tax Act, 2025 (applicable from the June 2027 session), who is empowered by section 533(1) to make rules for carrying out the purposes of the Act, and on what condition?

The Board makes the rules, by notification, and does so subject to the control of the Central Government. The power is delegated to the Board for carrying out the purposes of the Act, and it is exercised through notified rules rather than informal circulars.

  1. AThe Board, by notification, subject to the control of the Central GovernmentCorrect
  2. BThe Central Government, by notification, subject to the control of Parliament
  3. CThe Board, without any control, by internal circular
  4. DThe Principal Chief Commissioner, with the approval of the Board

Explanation

Section 533(1) states that the Board may, subject to the control of the Central Government, by notification, make rules for carrying out the purposes of the Act. The rule-making authority is therefore the Board, not the Central Government acting on its own. A circular is not a notified rule.

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