Rule 1 of the Income-tax Rules, 1962: Short Title and Commencement
Rule 1 established the official name and commencement date of the Income-tax Rules, 1962. Although the rules began operating on 1 April 1962, the Income-tax Rules, 2026 now govern the new statutory framework from 1 April 2026, subject to transitional provisions for earlier tax years.
Text of Rule 1: Short Title and Commencement
Part I - Preliminary
1. Short title and commencement
(1) These rules may be called the Income-tax Rules, 1962.
(2) They shall come into force on the 1st day of April, 1962.
Legal authority for the 1962 Rules
The Income-tax Rules, 1962 were originally made by the Central Board of Revenue in exercise of powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), together with rule 15 of Part A, rule 11 of Part B and rule 9 of Part C of the Fourth Schedule to that Act. The original notification was S.O. 969, dated 26 March 1962.
Section 295 empowered the making of rules to implement the Income-tax Act, 1961. Rule 1 itself is introductory: it identifies the rules and states their effective date; it does not prescribe tax rates, exemptions or return-filing requirements.
Meaning and significance of Rule 1
Short title: Sub-rule (1) provides the formal citation, "Income-tax Rules, 1962", used in legislation, notifications, legal documents and tax proceedings.
Commencement: Sub-rule (2) specifies 1 April 1962 as the date on which the rules came into force. Individual amendments introduced later may have their own effective dates and application provisions.
What changed from 1 April 2026?
The Central Board of Direct Taxes notified the Income-tax Rules, 2026 by G.S.R. 198(E), dated 20 March 2026, under section 533 of the Income-tax Act, 2025. Rule 1 of the 2026 Rules gives them their short title and fixes their commencement as 1 April 2026.
Under the transitional framework, the Income-tax Act, 1961 continues to govern tax years beginning before 1 April 2026. For example, income-tax returns for assessment year 2026-27, relating to the preceding financial year, are governed by the earlier framework and applicable return forms. Proceedings concerning earlier periods also continue under the relevant saved provisions.
Consequently, Rule 1 of the 1962 Rules remains useful when interpreting historical obligations and proceedings. For tax years beginning on or after 1 April 2026, readers should consult the Income-tax Act, 2025 and the Income-tax Rules, 2026.
Frequently asked questions
When did the Income-tax Rules, 1962 come into force?
They came into force on 1 April 1962, as stated in Rule 1(2).
Which law authorised the 1962 Rules?
The principal rule-making authority was section 295 of the Income-tax Act, 1961, along with the specified provisions of its Fourth Schedule.
Are the 1962 Rules still relevant in 2026?
Yes, for historical tax years and matters governed by the earlier statutory framework. The Income-tax Rules, 2026 apply under the new framework from 1 April 2026.