Notification No. 124

What it does

By the Income-tax (Eleventh Amendment) Rules, 2005, made under section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes amends rule 37 of the Income-tax Rules, 1962 in Part VI, substitutes rule 37E in Part VI-A, and substitutes Form Nos. 24, 26, 27 and 27E in Appendix II. In the Table to rule 37, against serial number 2, in column (1), the words 'and under section 194K from "Income in respect of units"' are substituted by 'under section 194K from "Income in respect of units" and under section 194LA from "Payment of compensation on acquisition of certain immovable property"', so that the entry now takes in deductions under section 194LA as well. The substituted rule 37E requires every person collecting tax in accordance with section 206C to deliver, in respect of a financial year, the return for collection of tax in Form No. 27E to the income-tax authority referred to in rule 37F by the end of June following the financial year.

Who it reaches

persons deducting tax under section 194LA on compensation for acquisition of immovable property
persons collecting tax at source under section 206C
deductors filing the annual returns in Form No. 24, Form No. 26 or Form No. 27
the income-tax authority referred to in rule 37F, who receives the collection return

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.194K	s.393, s.402
s.194LA	s.393, s.402
s.206C	s.2, s.390, s.394, s.395, s.397, s.398, s.400, s.402
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. 124/2005, DATED 30-3-2005

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 (Eleventh Amendment) Rules, 2005.
(2) They shall come into force on the date of publication in the Official Gazette.
2. In the Income-tax Rules, 1962, —
(a) In Part VI, in rule 37, in the Table, against serial number 2, in column (1), for the words, figures and letter ‘and under section 194K from "Income in respect of units"’; the words, figures and letters ‘under section 194K from "Income in respect of units" and under section 194LA from "Payment of compensation on acquisition of certain immovable property"’ shall be substituted;
(b) in Appendix II,—
(i) for Form No. 24, the following form shall be substituted, namely :—
FORM NO. 24
(ii) for Form No. 26, the following form shall be substituted, namely :—
FORM NO. 26
(iii) for Form No. 27, the following form shall be substituted, namely :—
FORM NO. 27
(iv) for Form No. 27E, the following form shall be substituted, namely :—
FORM NO. 27E
(c) in Part VI-A, for rule 37E, the following rule shall be substituted, namely:—
"37E. Prescribed returns regarding tax collected at source under section 206C(5A) - Every person collecting tax in accordance with the provisions of section 206C shall, in respect of a financial year, deliver or cause to be delivered to the Income-tax Authority referred to in rule 37F, the return for collection of tax in Form No. 27E by the end of June following the financial year. . . ."

[F. No. 149/87/2004-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 37	rule 203
Rule 37E	no counterpart recorded
Rule 37F	no counterpart recorded

Forms it touches. Form No. 24, Form No. 26, Form No. 27, Form No. 27E

From when

the date of publication in the Official Gazette.

What to watch

The rules come into force on the date of publication in the Official Gazette.
The addition to the Table in rule 37 brings deductions under section 194LA within the return described at serial number 2, alongside those under section 194K.
The return of tax collected at source is due by the end of June following the financial year, and must be in the substituted Form No. 27E.
Four forms are substituted in Appendix II, so returns for periods governed by the amendment must be made on the new forms and not the old.

Where you meet it

In the annual returns of tax deducted or collected at source, and in the deduction of tax on compensation paid on compulsory acquisition of immovable property.

What it names

Forms it names. Form No. 24, Form No. 26, Form No. 27, Form No. 27E

Rules it names. Rule 37, 37E, 37F 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.

Circular No. 6/2002 — 1058. Finance Act, 2002 - Threshold limits for deduction of tax at source from income by way of dividends and income fro 2 August 2002
Notification No. 237E — Following scheme of the Canbank Mutual Fund as the scheme having regard to the plan of payment of income to the unithold 21 March 1996
Notification No. 820E — Schemes of the SBI Mutual Fund and GIC Mutual Fund given in the Table below as the schemes having regard to the plan of 28 September 1995
Notification No. 736E — Following Schemes of the Unit Trust of India as the Schemes having regard to the plan of payment of income to the unitho 23 August 1995
Notification No. 35/2025 [F. No. 370142/11/2025-TPL] / GSR 252(E) — Ministry of Finance 22 April 2025
Notification No. 36/2025 [F. No. 370142/11/2025-TPL] / SO 1825(E) — Ministry of Finance 22 April 2025

← Notification No. 125 · Notification No. 123 →

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.

What this is