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

Which of the following matters is NOT specifically listed in section 533(2) of the Income-tax Act, 2025 as a subject on which rules may be made, though it could be covered only through the general power in sub-section (1)?

Rates of tax for companies are not listed in section 533(2). The list covers procedural and machinery matters such as refund procedure, interest calculation with rounding of months, and the form, manner and fee for appeals. Tax rates are fixed by Parliament, not by delegated rules.

  1. ARates of income-tax applicable to companies for a yearCorrect
  2. BThe procedure to be followed on applications for refunds
  3. CThe procedure for calculating interest payable by assessees or by the Government, including rounding off of fractions of a month
  4. DThe form and manner of filing an appeal or cross-objection and the fee payable

Explanation

Section 533(2) lists refund procedure, interest calculation including rounding off of months, and the form, manner and fee for appeals. Tax rates are not listed; they are fixed by the legislature, and delegated rules on procedure cannot fix rates. So rates are the odd one out.

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