Notification No. 25E

Directors of Income-tax (Exemption) specified in column 2 of the schedule hereto annexed directed under section 120

What this is

Notification No. 25E was published on 11 January 1996. Its subject is Directors of Income-tax (Exemption) specified in column 2 of the schedule hereto annexed directed under section 120.

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, in exercise of the powers conferred by sub-sections (1) and (3) of section 120 of the Income-tax Act, 1961, directs that the Directors of Income-tax (Exemption) specified in the annexed Schedule, having their headquarters at the places specified there, shall exercise their powers and perform their functions under clause (23F) of section 10 of the Act, and in accordance with rule 2D of the Income-tax Rules, 1962, in respect of all venture capital funds and venture capital companies having their registered office or head office at the places specified against them. The Schedule allots to the Director of Income-tax (Exemptions), Bombay, funds and companies with their office in Maharashtra, Gujarat, Goa and Daman and Diu; to Delhi, those in Delhi, Punjab, Haryana, Chandigarh, Jammu and Kashmir, Himachal Pradesh, Rajasthan, Madhya Pradesh and Uttar Pradesh; to Calcutta, those in Bihar, West Bengal, Orissa, Assam, Sikkim, Meghalaya, Tripura, Arunachal Pradesh, Mizoram, Nagaland and Manipur; and to Madras, those in Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Pondicherry, Dadra and Nagar Haveli, the Andaman and Nicobar Islands and Lakshadweep.

Who it reaches

venture capital funds and venture capital companies seeking approval under clause (23F) of section 10
the Directors of Income-tax (Exemptions) at Bombay, Delhi, Calcutta and Madras
applicants deciding where to file an application for approval

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.120	s.241, s.243

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.

In exercise of the powers conferred by sub-sections (1) and (3) of section 120 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby directs that the Directors of Income-tax (Exemption) specified in column 2 of the schedule hereto annexed, having their headquarters at the places specified in the corresponding entries in column 3 of the said schedule, shall exercise their powers and perform their functions, under clause (23F) of section 10 of the Income-tax Act, 1961, and in accordance with rule 2D of the Income-tax Rules, 1962, made thereunder in respect of all venture capital funds and venture capital companies having their registered office or head office, as the case may be, at the places specified in the corresponding entries in column 4 of the said Schedule

SCHEDULE ------- Sl. Designation of the Headquarters Jurisdiction No. Director ------- (1) (2) (3) (4) ------- 1. Director of Income-tax Bombay All venture capital funds and (Exemptions) venture capital companies seeking approval under clause (23F) of section 10 of Income-tax Act, 1961 (43 of 1961), and having their regis- tered office or head office in the State or Union Territory of-- (i) Maharashtra, (ii) Gujarat, (iii) Goa, and (iv) Daman and Diu.

2. Director of Income-tax Delhi All venture capital funds and (Exemptions) venture capital companies seeking approval under clause (23F) of section 10 of Income-tax Act, 1961 (43 of 1961), and having their regis- tered office or head office in the State or Union Territory of-- (i) Delhi, (ii) Punjab, (iii) Haryana, (iv) Chandigarh, (v) Jammu and Kashmir. (vi) Himachal Pradesh, (vii) Rajasthan, (viii) Madhya Pradesh, and (ix) Uttar Pradesh.

3. Director of Income-tax Calcutta All venture capital funds and (Exemptions) venture capital companies seeking approval under clause (23F) of section 10 of Income-tax Act, 1961 (43 of 1961), and having their regis- tered office or head office in the State or Union Territory of-- (i) Bihar, (ii) West Bengal, (iii) Orissa, (iv) Assam, (v) Sikkim, (vi) Meghalaya, (vii) Tripura, (viii) Arunachal Pradesh, (ix) Mizoram, (x) Nagaland, and (xi) Manipur.

4. Director of Income-tax Madras All venture capital funds and (Exemptions) venture capital companies seeking approval under clause (23F) of section 10 of Income-tax Act, 1961 (43 of 1961), and having their regis- tered office or head office in the State or Union Territory of-- (i) Andhra Pradesh (ii) Karnataka, (iii) Tamil Nadu, (iv) Kerala, (v) Pondicherry, (vi) Dadra and Nagar Haveli, (vii) Andaman and Nicobar Islands, and (viii) Lakshadweep. -------

[Notification No. 9938/F. No. 187/5/95-ITA-I

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 2D	no counterpart recorded

What to watch

Jurisdiction follows the situation of the registered office or head office of the fund or company, and not the place where its investments are made.
The powers are to be exercised in accordance with rule 2D of the Income-tax Rules, 1962, which governs the guidelines for approval under clause (23F) of section 10.
Each State and Union Territory is allotted to exactly one Director, so the Schedule must be read before an application is filed.
The notification does not state a date from which it takes effect.

Where you meet it

In an application by a venture capital fund or company for approval under clause (23F) of section 10, and in the office to which it is addressed.

What it names

Rules it names. Rule 2D 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. 155/2025 [F. No. CB/362/2025-O/o Addl. DIT 6 CPC Bengaluru-187/10/2024-ITA-I] /SO 4901(E) — [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 27 October 2025
Notification No. 50/2024 [F. No. 187/6/2024-TPL] / SO 2209(E) — Minstry of Finance 6 June 2024
Notification No. 47/2023 [F. No. 187/3/2020-ITA-I] / SO 2992(E) — Ministry of Finance 6 July 2023
Notification No. 14/2023 [F. No. 279/Misc./66/2014-ITJ(Pt.)] / SO 1329(E) — Ministry of Finance 21 March 2023
Notification No. 10/2023 [F.No. 187/3/2020-ITA-I] / SO 951(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 1 March 2023
Notification No.121/2022 [F.No.187/3/2020-ITA-I] / SO 5255(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 14 November 2022

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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.