Direct Tax Code Rules Ready-Reckoner

The Direct Tax Code (DTC) 2025 is supported by the Income-tax Rules, 2026, which provide detailed procedural and substantive guidance. This ready-reckoner cross-indexes key DTC sections to their corresponding rules, providing a quick reference for practitioners, taxpayers, and legal advisors.

Key Rules and Their Corresponding Sections

Chapter I — Preliminary

Rule	Subject	Corresponding Section
Rule 3	Arrangements for declaration and payment of dividends	Section 2(42)
Rule 4	Conditions for recognised stock exchange	Section 2(92)
Rule 5	Procedure for notification of recognised stock exchange	Section 2(92)
Rule 6	Method of determination of period of holding	Section 2(101)(c)(D)
Rule 7	Procedure for notification of zero coupon bond	Section 2(112)
Rule 8	Computation of period of stay in India	Section 6(6)
Rule 9	Determination of income in case of non-residents	Section 9
Rule 10	Definition of terms for rules 11 and 12	Section 9(10)
Rule 11	Fair market value of assets	Section 9(10)
Rule 12	Determination of income attributable to assets in India	Section 9(10)
Rule 13	Threshold for significant economic presence	Section 9(9)(d)

Chapter IV — Computation of Total Income

Rule	Subject	Corresponding Section
Rule 14	Method for determining expenditure in relation to exempt income	Section 14
Rule 15	Valuation of perquisites	Section 17
Rule 16	Annual accretion referred to in section 17(1)(i)	Section 17(1)(i)
Rule 17	Salary income for purposes of section 17(1)(c)(ii)	Section 17(1)(c)(ii)
Rule 18	Exemption of medical benefits	Section 17(2)(b)(ii)
Rule 19	Gross total income for purposes of section 17(3)(b)	Section 17(3)(b)
Rule 20	Procedure for voluntary retirement	Section 19(1)(Table: Sl. No. 12)
Rule 21	Unrealised rent	Section 21(4)
Rule 22	Computation of aggregate average advances	Section 31(1)(Table: Sl. No. 1)
Rule 23	Computation of pro rata amount of discount	Section 32(d)
Rule 24	Notification of infrastructure facility	Section 32(e)
Rule 25	Depreciation	Section 33
Rule 26	Cases where cash payment may be made	Section 36(4) and (5)
Rule 27	Form of statement for preliminary expenses	Section 44(3)
Rule 28	Form of audit report for preliminary expenses	Section 44(6) and 51(7)
Rule 29	Prescribed authority for scientific research	Section 45(1)(a)(ii) and (2)
Rule 30	Prescribed authority for scientific research programme	Section 45(3)(c)
Rule 31	Furnishing of statement for donations	Section 45(4)(a)
Rule 32	Procedure for approval of research association	Section 45(4)(b)
Rule 33	Conditions for approval of research association	Section 45(4)(b)
Rule 34	Conditions for approval of University/college	Section 45(4)(b)
Rule 35	Prescribed authority for company approval	Section 45(3)(b)
Rule 36	Procedure for notification of affordable housing	Section 46(11)(d)
Rule 37	Procedure for approval of agricultural extension project	Section 47(1)(a)
Rule 38	Conditions for agricultural extension projects	Section 47(1)(a)
Rule 39	Procedure for approval of skill development projects	Section 47(1)(b)
Rule 40	Conditions for skill development projects	Section 47(1)(b)
Rule 41	Expenditure for right to use spectrum	Section 52(7)(a)
Rule 42	Interest on bad and doubtful debt	Section 56
Rule 43	Form of audit report for royalty	Section 59(4)
Rule 44	Conditions for operation of cruise ships	Section 61(2)(Table: Sl. No. 2)
Rule 45	Conditions for resident company	Section 61(2)(Table: Sl. No. 6)
Rule 46	Maintenance of books of account	Section 62
Rule 47	Report of audit of accounts	Section 63

Chapter VII — Set Off and Carry Forward of Losses

Rule	Subject	Corresponding Section
Rule 60	Conditions for carry forward of losses in amalgamation	Section 116(4)(b)(iii)

Chapter VIII — Deductions

Rule	Subject	Corresponding Section
Rule 61	Certificate of medical authority	Sections 127 and 154
Rule 62	Prescription for medical treatment	Section 128
Rule 63	Prescribed authority for approval of University	Section 133(1)(a)(vii)
Rule 64	Procedure for notification of association	Section 133(1)(a)(xxiv)
Rule 65	Conditions for claim for deduction	Section 134
Rule 66	Furnishing of audit report	Sections 46, 138, 139, 140, 141, 142, 143, 144
Rule 67	Form of particulars for deduction	Section 144
Rule 68	Furnishing of report under section 146	Section 146(3)(c)
Rule 69	Report of accountant	Section 147(4)(a)
Rule 70	Form of certificate for authors	Section 151(5)
Rule 71	Prescribed authority for patent	Section 152(5)
Rule 72	Prescribed authority for foreign income	Sections 151(6) and 152(6)

Chapter IX — Rebates and Reliefs

Rule	Subject	Corresponding Section
Rule 73	Relief when salary is paid in arrears	Section 157(1)
Rule 74	Taxation of retirement benefit account	Section 158
Rule 75	Other documents for double taxation relief	Section 159(1) and (2)
Rule 76	Foreign tax credit	Section 159/160

Chapter X — Transfer Pricing

Rule	Subject	Corresponding Section
Rule 77	Meaning of expressions	Sections 161, 162, 163, 165, 171, 172, 173
Rule 78	Other method for determination	Section 165(1)(f)
Rule 79	Determination of arm's length price	Section 165
Rule 80	Most appropriate method	Section 165(2)(a)
Rule 81	Determination in certain cases	Section 165(3)(b)
Rule 82	Exercise of option for multiple years	Section 166(9)
Rule 83	Time period for repatriation	Section 170(2)
Rule 84	Information and documents to be maintained	Section 171(1)

Chapter XI — General Anti-Avoidance Rule

Rule	Subject	Corresponding Section
Rule 127	Determination of consequences	Section 181
Rule 128	GAAR not to apply in certain cases	Chapter XI
Rule 129	Notice and Forms for reference	Section 274
Rule 130	Time limits	Section 274
Rule 131	Procedure before Approving Panel	Section 274
Rule 132	Remuneration	Section 274

Chapter XIII — Determination of Tax

Rule	Subject	Corresponding Section
Rule 134	Exercise of option for patent royalty	Section 194(1)(Table: Sl. No. 2)
Rule 135	Calculation of net winnings	Section 194(1)(Table: Sl. No. 5)
Rule 136	Exercise or withdrawal of option for new tax regime	Sections 199, 200, 201, 202, 203, 204
Rule 137	Form of report for book profit	Section 206(1)(s)
Rule 138	Form of report for adjusted total income	Section 206(2)(j)

Chapter XIV — Tax Administration

Rule	Subject	Corresponding Section
Rule 158	Application for allotment of PAN	Section 262
Rule 159	Transactions for PAN quoting	Section 262(1)(f) and (9)(a)
Rule 162	When PAN becomes inoperative	Section 262(6)
Rule 164	Forms for return of income	Section 263
Rule 165	Furnishing of updated return	Section 263(6)
Rule 166	Conditions for defective return	Section 263(7)

Chapter XIX — Collection and Recovery of Tax

Rule	Subject	Corresponding Section
Rule 203	Credit for tax deducted or collected	Chapter XIX
Rule 204	Furnishing of particulars for salary	Section 392
Rule 205	Furnishing of evidence of claims	Section 392(5)(b)
Rule 206	Rate of exchange	Chapter XIX
Rule 207	Rate of exchange for TDS	Chapter XIX
Rule 211	Declaration for no deduction	Section 393(6)
Rule 213	Application for grant of certificate	Section 395
Rule 216	Application for TAN	Section 397(1)(a)
Rule 218	Time and mode of payment	Section 397(3)(a)
Rule 219	Statement of TDS/TCS	Section 397(3)(b)
Rule 225	Procedure for recovery of tax	Sections 413 and 475

Chapter XX — Refunds

Rule	Subject	Corresponding Section
Rule 230	Refund claim	Section 434

Expert Legal Guidance

Anuj Desai & Associates provides comprehensive legal advisory services on direct tax compliance. Our direct tax experts help practitioners and taxpayers navigate the DTC and rules framework, understand procedural requirements, and ensure compliance. We assist in rule interpretation, compliance planning, and representation before income-tax authorities.

Disclaimer: This article provides general information and does not constitute legal advice. For specific guidance on direct tax compliance or any other matter, please consult qualified legal professionals.

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Navigating the complex DTC and rules framework requires experienced legal counsel. At Anuj Desai & Associates, we provide comprehensive direct tax advisory services, including:

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Direct Tax Code Rules Ready-Reckoner — Rule Number to Section Cross-Index