Notification No. 133/2025 [F. No. 370142/27/2025-TPL] / G.S.R 555(E)

What it does

The Income-tax (Twenty Second Amendment) Rules, 2025, made under clause (2) of section 17 read with section 295 of the Income-tax Act, 1961, insert two new rules after rule 3B. New rule 3C prescribes, for item (c) of sub-clause (iii) of clause (2) of section 17, that the income under the head "Salaries" shall be four lakh rupees. New rule 3D prescribes, for clause (vi) of the proviso to clause (2) of section 17, that the gross total income shall be eight lakh rupees.

Who it reaches

Employees whose salary or gross total income is tested against these limits for perquisite purposes
Employers computing perquisite value and deducting tax under section 192
Payroll and return preparation software
Assessing Officers verifying perquisites returned under section 17(2)

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.3	s.3
s.17	s.16, s.17, s.18
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, the 18th August, 2025.
INCOME-TAX
G.S.R. 555(E).–––In exercise of the powers conferred by clause (2) of section 17 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules,1962, namely: ‒
1. (1) These rules may be called the Income tax (Twenty Second Amendment) Rules, 2025.
(2) They shall come into force on the date of their publication in Official Gazette.
2. In the Income-tax Rules, 1962, after rule 3B, the following rules shall be inserted, namely: ––
―3C. Salary income for the purposes of item (c) of sub-clause (iii) of clause (2) of section 17 of the Act. ––
For the purposes of item (c) of sub-clause (iii) of clause (2) of section 17 of the Act, the prescribed income under the head "Salaries" shall be four lakh rupees.
3D. Gross total income for the purposes of clause (vi) of Proviso to clause (2) of section 17 of the Act. ––
For the purposes of clause (vi) of Proviso to clause (2) of section 17 of the Act, the prescribed gross total income shall be eight lakh rupees.‖.
[Notification No. 133/2025/F. No. 370142/27/2025-TPL]
KRITIKA JAIN, Under Secy. (Tax Policy and Legislation)
Note: The Income-tax Rules,1962 were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), vide number S.O. 969 (E) dated the 26th March, 1962 and was last amended vide notification number G.S.R. 553(E), dated the 14th August, 2025.
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 3B	rule 17
Rule 3C	rule 16
Rule 3D	rule 19

From when

18 August 2025, on publication in the Official Gazette.

What to watch

The rules come into force on the date of their publication in the Official Gazette, that is 18 August 2025; they are not retrospective.
Two distinct limits are prescribed: four lakh rupees of salary income under rule 3C, and eight lakh rupees of gross total income under rule 3D.
The limits are absolute figures with no indexation or proviso in the text, so a taxpayer just over either figure falls outside the corresponding relief.
The note records that the Rules were last amended by G.S.R. 553(E) dated 14 August 2025.

Where you meet it

In the perquisite computation in Form No. 16 and the salary schedule of the return of income, and in an employer's monthly tax deduction under section 192.

An example

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

An employee whose income under the head "Salaries" is three lakh eighty thousand rupees is within the four lakh rupee figure prescribed by rule 3C; one at four lakh twenty thousand rupees is not.

What it names

Rules it names. Rule 3B 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. 94/2026 [F. No. 370142/24/2026-TPL] / G.S.R. 646(E) : Income-tax (Second Amendment) Rules, 2026 : Amendment of rule 157 of the Income tax Rules, 2026 to align the definition of the specified fund with rule 114AAB of the Income tax Rules, 1962 — Ministry of Finance 21 July 2026
Notification No. 64 — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 7 16 April 2026
Notification No. 63/2026 [F. No. 370142/13/2026-TPL]/ GSR 268(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026
Notification No. 62/2026 [F. No. 370142/10/2026-TPL]/ GSR 267(E) — Ministry of Finance 10 April 2026
Notification No. 61/2026 [F. No. 370142/9/2026-TPL] / GSR 266(E) — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 10 April 2026
Notification No. 60/2026 [F. No. 370142/8/2026-TPL]/ GSR 265(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026

← Notification No. 134/2025 [F. No. 196/86/2024-ITA-I] / S.O. 3796(E) · Notification No. 132/2025 [F. No. 370142/34/2025-TPL] / G.S.R. 553(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.

What this is