Notification No. 128

Income-tax (Fifth Amendment) Rules, 2006

What this is

Notification No. 128 was published on 1 June 2006. Its subject is Income-tax (Fifth Amendment) Rules, 2006.

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

Under section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes makes the Income-tax (Fifth Amendment) Rules, 2006, amending clause (b) of sub-rule (1) of rule 12 of the Income-tax Rules, 1962 and Appendix-II. In the second proviso, "return in Form No. 2E : Naya Saral" is substituted by "return in Form No. 2E : Naya Saral on or before 31st day of July, 2006". After the third proviso a new proviso is inserted giving an individual or Hindu undivided family resident in India the option of filing the return in Form No. 2F where the total income does not include income under the head "Profits and gains of business or profession" or "Capital gains" or agricultural income, no relief under section 89 in respect of arrears or advance of salary is claimed, and the assessee does not own more than one house property. A return in Form No. 2F need not be accompanied by a statement of the computation of tax payable, or by proof of tax deducted at source, advance tax or self-assessment tax claimed to have been paid. Form No. 2F with its instructions and acknowledgement is inserted in Appendix-II after Form No. 2E Naya Saral.

Who it reaches

resident individuals and Hindu undivided families with only salary, house property and other income
those who would otherwise have filed Form No. 2E Naya Saral
assessees owning more than one house property or claiming relief under section 89, who are outside the option

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.89	s.157
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.

INCOME-TAX (FIFTH AMENDMENT) RULES, 2006

Notification No. 128/2006, dated 1-6-2006

S.O. 848 (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 (Fifth Amendment) Rules, 2006.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, -

(a) in rule 12, in sub-rule (1), in clause (b) –

in the second proviso, for the words, figure and letter "return in Form No. 2E : Naya Saral", the words, figures and letter "return in Form No. 2E : Naya Saral on or before 31st day of July, 2006" shall be substituted;

(ii)after the third proviso, the following proviso shall be inserted, namely:-

‘Provided also that in the case of an assessee being an individual or a Hindu undivided family, resident in India, where –

(a) the total income does not include income chargeable to income-tax under the head "Profits and gains of business or profession" or "Capital gains" or agricultural income;

(b) no relief under section 89 in respect of arrears or advance of salary is claimed; and

(c) he does not own more than one house property,

the assessee shall also have the option of filing the return in Form No. 2F and the return in this Form shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted at source or the advance tax or tax on self-assessment, if any, claimed to have been paid:’

(b) in appendix-II, after the form "FORM No. 2E NAYA SARAL", the following form shall be inserted, namely:-

From 2F and Instructions

Acknowledgement

[142/41/2005-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 12	rule 164

Forms it touches. Form No. 2F, Form No. 2E

From when

the date of publication in the Official Gazette.

What to watch

The rules come into force from the date of their publication in the Official Gazette, which the text does not itself give.
Form No. 2E Naya Saral may be used only for returns filed on or before 31 July 2006.
All three conditions in the new proviso must be met; any business or professional income, capital gains, agricultural income, a claim under section 89, or a second house property takes the assessee out of Form No. 2F.
A return in Form No. 2F is not to be accompanied by the tax computation statement or by proof of taxes paid or deducted.

Where you meet it

In choosing the form of return for the year and in the acknowledgement issued on filing Form No. 2F.

What it names

Forms it names. Form No. 2E, Form No. 2F

Rules it names. Rule 12 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. 32/2025 [F. No. 370142/9/2025-TPL] / SO 1650(E) — Under the Direct Tax Vivad se Vishwas Scheme notified under section 89 8 April 2025
Circular No. 19/024 — On provisions of the direct tax vivad se vishwas scheme 2024 16 December 2024
Circular No. 12/2024 — Guidance note 1/2024 on provisions of the direct tax vivad se vishwas scheme 2024 15 October 2024
Circular No. 9/2006 — 9/2006 dated 10 10 2006 10 October 2006
Circular No. 1/2002 — 960. Instruction for deduction of tax at source from salaries during the Financial year 2001-2002 under section 192 4 February 2002
Circular No. 15 — Financial Year 2001-2002 12 December 2001

← Notification No. 127 · Notification No. 126 →

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.