Case law › Notifications › 2023 › Notification No. 34/2023 [F. No. 370142/13/2023-TPL] / GSR 399(E)

Notification 30 May 2023

Notification No. 34/2023 [F. No. 370142/13/2023-TPL] / GSR 399(E)

Ministry of Finance

What this is

Notification No. 34/2023 [F. No. 370142/13/2023-TPL] / GSR 399(E) was published on 30 May 2023. Its subject is Ministry of Finance.

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

Made under clauses (i) to (iv) of the first proviso and the third proviso to sub-section (5) of section 80G read with section 295 of the Income-tax Act, 1961, the Income-tax (7th Amendment) Rules, 2023 substitute sub-rule (7) of rule 11AA of the Income-tax Rules, 1962. As substituted, where an application is made under clause (iv) of the first proviso to section 80G(5), the provisional approval is to be effective from the assessment year relevant to the previous year in which the application is made.

Who it reaches

trusts and institutions applying for provisional approval under section 80G
donors relying on the period covered by a provisional approval
the Principal Commissioner or Commissioner granting approval
practitioners settling the year from which an approval runs

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.80G	s.133, s.332, s.354
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, 30th May, 2023
INCOME-TAX
G.S.R. 399(E).—In exercise of the powers conferred by clauses (i), (ii), (iii) and (iv) of the first proviso to sub-section (5) of section 80G and the third proviso to sub-section (5) of section 80G read with 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. Short title and commencement. ̶̶ (1) These rules may be called the Income-tax (7th Amendment) Rules, 2023.
(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 11AA, for sub-rule (7), the following sub-rule shall be substituted, namely:-
"(7) ̶̶In ̶̶case ̶̶of ̶̶an ̶̶application ̶̶made ̶̶under ̶̶clause ̶̶(iv) ̶̶of ̶̶the ̶̶first ̶̶proviso ̶̶to ̶̶sub-section (5) of section 80G of the Act, the provisional approval shall be effective from the assessment year relevant to the previous year in which such application ̶̶is ̶̶made.".

[Notification No. 34/2023/ F. No. 370142/13/2023-TPL]
VIPUL AGARWAL, Director (Tax Policy and Legislation)

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E) dated 26th March, 1962 and were last amended vide notification number G.S.R. 396 (E) dated 29th May, 2023.

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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 11AA	no counterpart recorded

From when

The date of publication in the Official Gazette (the notification is dated 30 May 2023).

What to watch

The rules come into force on the date of their publication in the Official Gazette.
The rule fixes the year of effect by reference to the year of the application, not the year of the order granting approval.
It applies only to an application under clause (iv) of the first proviso to section 80G(5); applications under the other clauses are not governed by the substituted sub-rule.
The principal rules were last amended by G.S.R. 396(E) dated 29 May 2023, the day before, so rule 11AA is to be read as amended to that point.

Where you meet it

In the order of provisional approval under section 80G and in a donor's claim to deduction, where the assessment year from which the approval operates is in question.

An example

Ours, not the Board’s: a worked case built from the rule the instrument sets, to show how it falls out.

A trust makes an application under clause (iv) of the first proviso to section 80G(5) during the previous year 2023-24. On the substituted sub-rule (7), its provisional approval takes effect from assessment year 2024-25, whatever the date on which the order is passed.

What it names

Rules it names. Rule 11AA 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. 6/2026 — Condonation of delay in filing Form No. 10AB electronically for approval under clause(ii) of the first proviso to sectio 2 July 2026
Notification No. 166/2025 [F. No. 300176/2/2025/ITA-I] / SO 5551(E) — Minstry of Finance 2 December 2025
Notification No. 40/2024 [F. No. 176/2/2023-ITA-I] / SO 1771(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 23 April 2024
Notification No. 29/2022 [F. No.176/2/2022-ITA-I] / SO 1770(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 11 April 2022
Notification No. 36/2021 [F. No. 176/1/2021/ITA-I]/SO 1698(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 23 April 2021
Notification No. 24/2020 [F. No. 176/8/2017/ITA-I] / SO 1434(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 8 May 2020

← Notification No. 35/2023 [F. No. 370142/14/2023-TPL] / GSR 403(E) · Notification No. 33/2023 [F.No. 370142/10/2023-TPL] / SO 2352(E) →

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.