Notification No. 18E

Amendment of the Income-tax Rules under section 44AA of the Income-tax Act, 1961

What this is

Notification No. 18E was published on 12 January 1977. Its subject is Amendment of the Income-tax Rules under section 44AA of the Income-tax Act, 1961.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

The Central Board of Direct Taxes publishes, for the information of all persons likely to be affected, the draft of rules further to amend the Income-tax Rules, 1962, proposed to be made in exercise of the powers under sub-section (3) of section 44AA read with section 295 of the Income-tax Act, 1961, and gives notice that the draft will be taken into consideration on or after 1 March 1977, any objection or suggestion received before that date being considered by the Board. The draft rules, to be called the Income-tax (Amendment) Rules, 1977, would insert a new Sub-Part CC, "Books of account", in Part II of the Income-tax Rules, 1962 after rule 6E and before Sub-Part D, containing rule 6F. Draft rule 6F would require every person carrying on the legal, medical, engineering or architectural profession, or the profession of accountancy, technical consultancy, interior decoration, authorised representative or film artist, to keep and maintain a daily cash book, a journal where the mercantile system is followed, a ledger, duplicate copies of machine-numbered bills and receipts issued, and original bills and receipts for expenditure or, where none are issued and the expenditure does not exceed twenty-five rupees, payment vouchers prepared and signed by the person. A person carrying on the medical profession would in addition keep a daily case register in Form No. 3C and an inventory, as on the first and last day of the previous year, of the stock of drugs, medicines and other consumable accessories. The books are to be kept at the place of the profession or, where it is carried on at more places than one, at the principal place, with a proviso permitting separate books for each place to be kept at that place. Form No. 3C, the Form of Daily Case Register, would be inserted in Appendix II after Form No. 3B. The Explanation defines "authorised representative", "daily cash book" and "film artist", the last covering an actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen-play writer, dialogue writer and dress designer, including assistants in the categories named.

Who it reaches

persons carrying on the specified professions who would have to maintain the prescribed books
medical practitioners, who would additionally maintain a daily case register and stock inventory
persons wishing to file objections or suggestions on the draft before 1 March 1977

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.44AA	s.58, s.62

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

The following draft of certain rules further to amend the Income-tax Rules, 1962, which the Central Board of Direct Taxes proposes to make in exercise of the powers conferred by sub-section (3) of section 44AA, read with section 295, of the Income-tax Act, 1961 (43 of 1961), is hereby published for the information of all persons likely to be affected thereby ; and notice is hereby given that the said draft will be taken into consideration on or after the 1st day of March, 1977.

2. Any objection or suggestion which may be received from any person with reference to the said draft before the said date will be considered by the Central Board of Direct Taxes.

DRAFT RULES

1. (1) These rules may be called the Income-tax (Amendment) Rules, 1977.

2. In Part II of the Income-tax Rules, 1962, after rule 6E and before Sub-Part D, the following Sub-Part shall be inserted, namely :--

"CC. Books of account.

6F. Books of account and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain professions. -- (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist shall keep and maintain the books of account and other documents specified in sub-rule (2).

(2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely :--

(i) a daily cash book ;

(ii) a journal, if the accounts are maintained according to the mercantile system of accounting ;

(iii) a ledger ;

(iv) duplicate copies of machine-numbered bills and receipts issued by the person ;

(v) original bills and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed twenty-five rupees, payment vouchers prepared and signed by the person.

Explanation. -- In this rule, --

(a) "authorised representative" means a person who represents any other person, on payment of any fee or remuneration, before any tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy ;

(b) "daily cash book" means a record of all cash receipts and payments, kept and maintained from day to day, and giving the cash balance in hand at the end of each day ;

(c) "film artist" means any person engaged in his professional capacity in the production of a cinematograph film, whether produced by him or by any other person, as --

(i) an actor ;

(ii) a cameraman ;

(iii) a director, including an assitant director ;

(iv) a music director, including an assistant music director ;

(v) an art director, including an assistant art director ;

(vi) a dance director, including an assitant dance director ;

(vii) an editor ;

(viii) a singer ;

(ix) a lyricist ;

(x) a story writer ;

(xi) a screen-play writer ;

(xii) a dialogue writer ; and

(xiii) a dress designer.

(3) A person carrying on medical profession shall, in addition to the books of account and other documents specified in sub-rule (2), keep and maintain the following, namely :--

(i) a daily case register in Form No. 3C ;

(ii) an inventory, as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.

(4) The books of account and other documents specified in sub-rule (2) and sub-rule (3) shall be kept and maintained by the person at the place where he is carrying on the profession or, where the profession is carried on in more places than one, at the principal place of his profession :

Provided that where the person keeps and maintains seperate books of account in respect of each place where the profession is carried on, such books of account and other documents may be kept and maintained at the respective places at which the profession is carried on.".

3. In Appendix II to the Income-tax Rules, 1962, after Form No. 3B, the following Form shall be inserted, namely :--

"FORM No. 3C [See rule 6F(3)] Form of Daily Case Register

(To be maintained by practitioners of any system of medicine, i.e., physicians, surgeons, dentists, pathologists, radiologists, vaids, hakims, etc.)

------ Date S. No. Patient's name Nature of professional Fees or charges for services rendered, i.e., services rendered general consultation, - surgery, injection, By By visit, etc. cash cheque Rs. Rs. ------ (1) (2) (3) (4) (5) (6) ------

-------

[No. 1620/F. No. 133(102)/76-TPL

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 6F	rule 46
Rule 6E	rule 330

Forms it touches. Form No. 3C, Form No. 3B

What to watch

This is a draft published for objections, not an operative rule; it is to be taken into consideration on or after 1 March 1977.
Objections or suggestions must reach the Board before that date to be considered.
Payment vouchers may replace bills and receipts only where none are issued and the expenditure does not exceed twenty-five rupees.
Books must be kept at the principal place of profession unless separate books are maintained for each place.

Where you meet it

In the books a professional must produce on an assessment or survey where compliance with section 44AA is examined, and in the daily case register a medical practitioner keeps in Form No. 3C.

What it names

Forms it names. Form No. 3B, Form No. 3C

Rules it names. Rule 6E, 6F of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 92 — Section 120 (1) and (2) of the Income-tax Act, 1961 - Income-tax authorities - Jurisdiction of – Amendment in Notificati 8 December 2009
Notification No. 06 — A notification under section 44AA of the Income-tax Act, 1961 8 January 2004
Notification No. 30 — In Schedule-I, to the said notification for serial numbers 67, 74, 207, 208, 209, 210 and 211, and the entries relating 4 February 2003
Notification: 21 Date of Issue : 4/2/2002 — Amendment of the Income-tax Rules under section 44AA of the Income-tax Act, 1961 4 February 2002
Notification No. 385E- — Profession of information technology notified under section 44AA 4 May 2001
Circular No. 3 — 414. Filing of Audit Report under sections 44AD(6), 44AE(7) and 44AF(5) of the Income-tax Act, 1961, for the assessment 9 February 2001

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.