Notification No. 237

Amendment of the Income-tax Rules under section 197 of the Income-tax Act, 1961

What this is

Notification No. 237 was published on 2 September 2004. Its subject is Amendment of the Income-tax Rules under section 197 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, in exercise of the powers conferred by section 295 of the Income-tax Act, 1961, makes the Income-tax (Tenth Amendment) Rules, 2004, amending the Income-tax Rules, 1962. In rule 28AB, in sub-rule (2), for the word, brackets and figure "sub-rule (2)" there is substituted "sub-rule (1)". The amendment corrects the internal cross-reference in sub-rule (2) so that it points to sub-rule (1).

Why it was issued

The explanatory memorandum states that rule 28AB relates to a certificate for no deduction of tax at source for entities whose income is exempt subject to conditions and who must file returns under sub-sections (4A) and (4C), that sub-rule (1) provides for the persons who may apply under sub-section (1) of section 197 subject to the conditions in sub-rule (2), and that sub-rule (2) has been amended retrospectively to refer to sub-rule (1) instead of sub-rule (2).

Who it reaches

entities whose income is exempt applying for a certificate of no deduction of tax at source
persons applying under sub-section (1) of section 197
payers relying on a certificate issued under rule 28AB
assessing officers issuing certificates under rule 28AB

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.197	s.395, s.400
s.295	s.533

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.

Notification No : 237

Section(s) Referred : Section 295

Date of Issue : 2/9/2004

Notification No. 237 of 2004, dt. 2nd Sep., 2004

S.O. 980 (E). -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 (Tenth Amendment) Rules, 2004.

(2) They shall be deemed to have come into force on the 1 st day of April, 2004.

2. In the Income-tax Rules, 1962, in rule 28AB, in sub-rule (2), for the word, brackets and figure "sub-rule (2)", the word, brackets and figure "sub-rule (1)" shall be substituted.

Note.- The principal rules were published vide Notification No.S.O.969(E), dated the 26 th March, 1962 and last amended vide Notification S.O. No. 812 (E) dated 14 th July, 2004.

Explanatory Memorandum

Rule 28AB relates to certificate for no deduction of tax at source in case of entities whose income is exempt from tax subject to certain conditions and who are required to file income-tax returns under the provisions of sub-sections (4A) and (4C) of the Income-tax Act. Sub-rule (1) of the said rule provides for persons who can file such applications under the provisions of sub-section (1) of section 197 subject to the conditions specified in sub-rule (2).

Sub-rule (2) of the said rule has been amended retrospectively to give reference to sub-rule (1) instead of sub-rule (2). It is certified that the retrospective effect to the proposed amendment to the said sub-rule shall not prejudicially affect the interest of any assessee.

F.No.149/128/2004-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 28AB	rule 213

From when

1 April 2004, retrospectively.

What to watch

The rules are deemed to have come into force on the 1st day of April, 2004, so the amendment is retrospective.
The explanatory memorandum certifies that the retrospective effect shall not prejudicially affect the interest of any assessee.
The change is only to a cross-reference within sub-rule (2) of rule 28AB; no condition is added or removed by it.
The principal rules were published by S.O. 969(E) dated 26th March, 1962 and were last amended vide S.O. 812(E) dated 14th July, 2004.

Where you meet it

In an application under rule 28AB for a certificate that tax need not be deducted at source, and in the conditions the Assessing Officer applies before issuing it.

What it names

Rules it names. Rule 28AB 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. 02 /2023 — Procedure format and standards for filling an application for grant of certificate under sub rule 4 and its proviso of r 27 September 2023
Circular No. 402/92/2006-MC (04 OF 2010) — Of 2010 press release no. 402/92/2006 mc 04 of 2010 dated 20 1 2010 1 20 January 2010
Circular No. 7/2008 — Order under section 119(1) of the Income-tax Act, 1961 regarding exemption from the TDS provisions under section 197 rea 1 August 2008
Circular No. 780 — 149. Computation of income falling under section 10(23G) 4 October 1999
Circular No. 774 — 1174. Whether certificate issued under section 197(1) will be applicable only in respect of credit or payments, as the c 17 March 1999
Circular No. 716 — Section 194A l Interest Other Than "Interest on Securities" 9 August 1995

← Notification No. 241 · Notification No. 179 →

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.