Rule 251, Income-tax Rules 2026 — Accountancy examinations recognised

Where this rule sits

Rule 251 gives effect to Section 515 of the Income-tax Act, 2025. A rule cannot go beyond the section it serves: where the two seem to differ, the section governs.

← Rule 250 · Rule 252 →

What this rule does

The rule lists the accountancy examinations recognised for section 515(3)(a)(v). They are: the National Diploma in Commerce awarded by the All-India Council for Technical Education under the Ministry of Education, New Delhi, provided the diploma-holder took Advanced Accountancy and Auditing as an elective subject for the Diploma Examination; the Government Diploma in Company Secretaryship awarded by the Department of Company Affairs under the Ministry of Corporate Affairs, New Delhi; the final examination of the Institute of Company Secretaries of India, New Delhi; the final examination of The Institute of Cost Accountants of India constituted under the Cost and Works Accountants Act, 1959; the departmental examinations conducted by or on behalf of the Central Board of Direct Taxes for Assessing Officers, Class I or Group 'A', Probationers, or for Assessing Officers, Class II or Group 'B', Probationers, or for promotion to the post of Assessing Officers, Class II or Group 'B'; and the Revenue Audit Examination for Section Officers conducted by the Office of the Comptroller and Auditor General of India.

Why it is there

Section 515(3)(a)(v) admits a person who has passed a recognised accountancy examination, but recognition has to be conferred by someone. The rule does that by naming six examinations and no others, so the qualification is settled by the list rather than by an assessment of equivalence in each case.

Who it applies to

A person seeking to qualify under section 515(3)(a)(v) by having passed a recognised accountancy examination
The income-tax authority before whom such a person seeks to appear or act

What this means in practice

The list is exhaustive; an examination not on it is not recognised for section 515(3)(a)(v) however close its subject matter. Entry (1) carries a condition inside it, that the holder of the National Diploma in Commerce took Advanced Accountancy and Auditing as an elective for the Diploma Examination, so the diploma alone is not enough. Entry (5) is limited to the departmental examinations it describes for Assessing Officers of the classes and grades named, or for promotion to Assessing Officer, Class II or Group 'B'.

Where you meet this rule

You meet it when a person's qualification to act in a capacity governed by section 515(3)(a)(v) is tested, and the examination he has passed has to be matched against this list.

The words themselves

The following accountancy examinations are recognised for the purposes of section 515(3)(a)(v)

Rule 251, Income-tax Rules, 2026.

provided the diploma-holder has taken Advanced Accountancy and Auditing as an elective subject for the Diploma Examination

Rule 251(1), Income-tax Rules, 2026.

What people get wrong

Reading the list as illustrative. It is the set of examinations recognised for section 515(3)(a)(v).
Relying on the National Diploma in Commerce without the elective. Entry (1) requires Advanced Accountancy and Auditing to have been taken as an elective subject.
Treating an intermediate or foundation level as sufficient where the entry names the final examination, as entries (3) and (4) do.

What this page does not tell you. It does not reproduce the rule. Everything above was written from the rule’s own text as the Income Tax Department publishes it — the text is here. A rule is subordinate legislation: it prescribes the method, the form or the period, and it cannot enlarge the charge the section imposes. Where a figure matters, read the sub-rule it comes from.

Rule 251 of the Income-tax Rules, 2026