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Case lawNotifications2004 › Notification No. 291
Notification 7 December 2004

Notification No. 291

Amendment of the Income-tax Rules under section 3 of the Income-tax Act, 1961

What this is

Notification No. 291 was published on 7 December 2004. Its subject is Amendment of the Income-tax Rules under section 3 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

In exercise of the powers under section 295 read with sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17 of the Income-tax Act, 1961, the Central Board of Direct Taxes makes the Income-tax (19th Amendment) Rules, 2004, amending rule 3A of the Income-tax Rules, 1962. In sub-rule (1) the opening words are substituted so that the rule applies to the grant of approval to any hospital other than a hospital for Indian system of medicine and homoeopathic treatment, and the statutory reference is corrected to sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17. A new sub-rule (1A) is inserted providing that in granting approval to a hospital for Indian system of medicine and homoeopathic treatment the Chief Commissioner shall satisfy himself that the hospital fulfils the conditions specified in the Office Memorandum dated 6 June 2002 of the Department of Indian Systems of Medicine and Homoeopathy, Ministry of Health and Family Welfare, for approval of private hospitals for such treatment to Central Government Health Scheme beneficiaries and Central Government employees. Sub-rule (2) carries the same corrected statutory reference.

Who it reaches

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 ActNow
s.3s.3
s.17s.16, s.17, s.18
s.295s.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 : 291

Section(s) Referred : Section 295

Date of Issue : 7/12/2004

Notification No. 291 of 2004, dt. 7th Dec., 2004

S.O. 1334(E).- In exercise of the powers conferred by section 295 read with sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17 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 (19 th Amendment) Rules, 2004.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Rule 3A,-

(a) in sub-rule (1), for the words, brackets, letter and figures "In granting approval to any hospital for the purposes of sub-clause (b) of clause (ii) of the proviso to clause (2) of section 17", the following words, brackets, letter and figures shall be substituted, namely:- "In granting approval to any hospital other than a hospital for Indian system of medicine and homoeopathic treatment for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17";
(b) after sub-rule (1), the following sub-rule shall be inserted, namely:- "(1A) In granting approval to any hospital for Indian system of medicine and homoeopathic treatment for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause 2 of section 17, the Chief Commissioner shall satisfy himself that the hospital fulfils the conditions specified vide Office Memorandum dated the 6 th June, 2002, by the Department of Indian Systems of Medicine and Homoeopathy, Ministry of Health and Family Welfare for approval of private hospitals for Indian system of medicine and homoeopathic treatment to Central Government Health Scheme beneficiaries and Central Government employees.";
(c) in sub-rule (2), for the words, brackets, letter and figures "For the purpose of sub-clause (b) of clause (ii) of the proviso to clause (2) of section 17", the words, brackets, letter and figures shall be substituted, namely:-

"For the purpose of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17".

Note.- The principal rules were published in the Gazette of India, Extraordinary Part-II, section 3(ii), dated the 26 th March, 1962 vide S.O. 969 (E) which was amended from time to time and last amended by Income-tax (18 th Amendment) Rules, 2004 vide Notification S.O. No.1321(E) dated 02.12.04.

F.No. 142/34/2004-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 RulesNow, in the 2026 Rules
Rule 3Arule 18

From when

the date of publication in the Official Gazette.

What to watch

Where you meet it

In a hospital's application for approval to the Chief Commissioner, and in a salary assessment where treatment at an approved hospital is claimed not to be a taxable perquisite under section 17(2).

What it names

Rules it names. Rule 3A 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. 294  ·  Notification No. 289 →

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.