Amendment of the Income-tax Rules under section 11 of the Income-tax Act, 1961
Notification No. 10 was published on 12 January 2004. Its subject is Amendment of the Income-tax Rules under section 11 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.
By the Income-tax (Third Amendment) Rules, 2004, made under section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes inserts rule 28AB in the Income-tax Rules, 1962 after rule 28AA. The new rule allows a person in receipt of income or deemed income derived from property held under trust wholly for charitable or religious purposes who claims exemption under section 11 or section 12, and a person required to file a return in respect of a scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-section (4C) of section 139, to apply to the Assessing Officer under sub-section (1) of section 197 for a certificate authorising receipt of income without deduction of tax at source. The application is to be made in accordance with sub-rule (1) of rule 28. The conditions are that returns of income have been furnished for all assessment years for which they became due on or before the date of the application, that the entity is for the time being approved for exemption from income-tax, and that the applicant gives a list of deductors from whom amounts are to be received without deduction, every six months, with names, addresses and amounts received. The Assessing Officer may issue the certificate if satisfied that the conditions are fulfilled and that issue will not be prejudicial to the interests of revenue; the certificate is valid for the financial year specified in it unless cancelled earlier, copies may be furnished to the persons paying the income, and a fresh application may be made after the period of validity expires.
Notification No : 10
Section(s) Referred :
Date of Issue : 12/1/2004
Notification No. 10 of 2004, dt. 12th Jan., 2004
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Third Amendment) Rules, 2004.
(2) They shall come into force from the 1st day of April, 2004.
2. In the Income-tax Rules, 1962, after rule 28AA, the following rule shall be inserted, namely: -"Certificate of no deduction of tax in case of certain entities.
28AB. (1) Subject to the conditions specified in sub-rule (2), a person -
(a) in receipt of income or deemed income derived from property held under trust wholly for charitable or religious purposes and who claims exemption under section 11 or section 12;
or
(b) required to file a return in respect of a scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-section (4C) of section 139,
may make an application to the Assessing Officer for the grant of a certificate under sub-section (1) of section 197 authorizing him to receive incomes without deduction of tax at source.
(2) The conditions referred to in sub-rule (2) are the following, namely:-
(i) the person concerned has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made;
(ii) the trust, scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-rule (1) is for the time being approved for the purpose of exemption from income tax; and
(iii) the applicant gives a list of deductors from whom amounts are to be received without deduction of tax at source every six months alongwith the names, addresses and the amounts received.
(3) An application for the certificate is to be made to the Assessing Officer in accordance with sub-rule (1) of rule 28.
(4) The Assessing Officer may issue a certificate authorizing payment of incomes without deduction of tax at source if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the issue of any such certificate will not be prejudicial to the interests of revenue.
(5) The applicant may furnish copies of certificate issued under sub-rule (4) to the person responsible for paying the income for the purpose of no deduction of tax at source.
(6) The certificate shall be valid for the financial year specified therein unless it is cancelled by the Assessing Officer at any time before the expiry of the said financial year.
(7) An application for a fresh certificate may be made, if the assessee so desires, after the expiry of the period of validity of the earlier certificate."
F.No. 142/05/2004-TPL
1 April 2004.
In an application under rule 28 for a certificate under section 197, in the certificate handed to a payer to stop deduction at source, and in the trust's return claiming exemption under section 11 or section 12.
Rules it names. Rule 28, 28AA 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.
Source: the Income Tax Department’s own published text — its page for this instrument.