Rules 258 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Six short rules deal with an authorised income-tax practitioner who is removed from the register or who faces an inquiry into misconduct. Rules 258 and 259 say when the certificate of registration is cancelled; rules 263, 264, 266 and 267 say who conducts the inquiry and how. This article reads them as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
A certificate of registration stands cancelled when the holder's name is removed from the register (rule 258). It can also be cancelled by the specified authority if it was obtained through misrepresentation as to an essential fact, after a reasonable hearing (rule 259). In a misconduct inquiry, the prescribed authority appoints an Inquiry Officer not below the rank of Assistant Commissioner of Income-tax (rule 263), who must let the practitioner cross-examine and give evidence (rule 264).
The section behind these rules
None of the six rules names a section of its own. They sit in the group of rules 250 to 268, which serve section 515 of the Income-tax Act, 2025 on appearance by authorised representatives; rule 250 says its definitions are for rules 251 to 268 and names section 515(3)(a)(v) and (vi), and its neighbours rule 261 and rule 265 name section 515(5)(b) and 515(1). Read the section in our article on section 515 on appearance by an authorised representative.
Terms come from rule 250. An "authorised income-tax practitioner" is an authorised representative under section 515(3)(a)(v) or (vi). The "register" is the register of income-tax practitioners referred to in rule 255. The "specified authority" is the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner of Income-tax, as the case may be. The "prescribed authority" for section 515(5)(b) is the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner having jurisdiction over the case in the proceedings connected with which the practitioner is alleged to be guilty of misconduct. None of the six rules names a form.
Neighbouring rules are explained elsewhere: the register and certificate in rules 255, 256, 257 and 260, the misconduct inquiry in rules 261, 262, 265 and 268, and qualifications in rules 250 to 252. If you face removal or an inquiry, a legal consultation before replying to a charge is worthwhile.
Rules 258 and 259: cancellation of the certificate
| Rule | Sub-rule | What it says |
|---|---|---|
| 258 | (1) | A certificate of registration stands cancelled when the name of its holder is removed from the register under these rules |
| 258 | (2) | When the name is removed, the Chief Commissioner or Commissioner maintaining the register notifies the fact to the practitioner concerned, to other Chief Commissioners or Commissioners (who notify the income-tax authorities subordinate to them) and to the Appellate Tribunal |
| 259 | (1) | If the specified authority is satisfied at any time that the certificate was obtained through misrepresentation as to an essential fact, he orders removal of the practitioner's name from the register |
| 259 | (2) | No such order unless the practitioner has been given a reasonable opportunity of being heard on the proposed removal |
Rule 258 is automatic: cancellation follows removal. It does not itself give a ground for removal; grounds appear in other rules, such as rule 259 and rule 265, and in rule 260 (removal during disqualification in the circumstances in section 515(4)(b) or (c)). The notification under rule 258(2) goes beyond the practitioner: it reaches the other Chief Commissioners and Commissioners and the Appellate Tribunal, so that those before whom the practitioner appears know of the removal.
Rule 259 has the words "at any time", so the rule prints no limitation period for acting on misrepresentation.
Rules 263, 264, 266 and 267: the inquiry
Rule 261 says an order disqualifying a practitioner under section 515(5)(b) is passed only after an inquiry held, as far as may be, under rules 262 to 267. Rule 262 provides the charge-sheet. The rules covered here continue from there.
| Rule | What it says |
|---|---|
| 263 | The prescribed authority appoints an Inquiry Officer, not below the rank of Assistant Commissioner of Income-tax, to conduct the inquiry, unless it proposes to conduct the inquiry itself, and informs the practitioner of the appointment |
| 264(1) | On receiving the written statement of defence, or if none arrives within the time specified, the Inquiry Officer inquires into the charges that are not admitted |
| 264(2) | He considers relevant or material documentary evidence and takes oral evidence |
| 264(3) | The practitioner is entitled to cross-examine witnesses examined in support of the charges and to give evidence in person |
| 264(4) | If he declines to examine a witness as not relevant or material, he records reasons in writing |
| 264(5) | At the end of the inquiry he prepares a report recording findings on each charge with reasons |
| 266 | Rules 264 and 265 apply, to the extent possible, to the prescribed authority if it conducts the inquiry itself |
| 267 | If the Inquiry Officer must be changed during an inquiry, the prescribed authority may appoint another officer not below the rank of Assistant Commissioner of Income-tax, and the proceedings continue from where the predecessor left them |
After the report, rule 265 (explained in the linked article) requires the prescribed authority to record findings on each charge and, if it finds misconduct, to pass an order disqualifying the practitioner. The rules print no time limit for the inquiry or the report.
Who is affected and what follows
| Person | Effect |
|---|---|
| Authorised income-tax practitioner | May lose the certificate by removal from the register (rule 258) or on a finding of misrepresentation (rule 259); has the right to be heard and, in an inquiry, to cross-examine and give evidence (rule 264) |
| Prescribed authority and specified authority | Order removal, appoint and change the Inquiry Officer, or conduct the inquiry themselves |
| Inquiry Officer | Must be at least of the rank of Assistant Commissioner of Income-tax; records reasons for refusing a witness and reports on each charge |
| Clients of the practitioner | The practitioner may be disqualified from representing them for the period fixed by the order under rule 265 |
Example. Anand Tax Advisors (invented) is an authorised income-tax practitioner. The specified authority learns that its certificate was obtained on a misrepresented qualification. It cannot order removal without giving Anand a reasonable opportunity of being heard (rule 259). Once the name is removed, the certificate stands cancelled (rule 258(1)) and the Commissioner maintaining the register informs the Appellate Tribunal and other Commissioners (rule 258(2)). Separately, if a different Commissioner as prescribed authority charges Anand with misconduct in a client's proceedings, he appoints an Inquiry Officer of the rank of Assistant Commissioner or above, informs Anand, and the Inquiry Officer must allow Anand to cross-examine the witnesses (rules 263 and 264).
Need help with a practitioner matter?
Whether you are a practitioner served with a charge or a client whose representative faces removal, the timing of the defence and the record of the hearing matter. A legal consultation can help you prepare the reply and the evidence.
Key takeaways
- A certificate of registration stands cancelled when the holder's name is removed from the register (rule 258).
- The specified authority can order removal for misrepresentation as to an essential fact, after a reasonable hearing (rule 259).
- The Inquiry Officer is not below the rank of Assistant Commissioner of Income-tax (rules 263 and 267).
- The practitioner can cross-examine witnesses and give evidence in person; refusal to examine a witness must be reasoned in writing (rule 264).
- If the prescribed authority conducts the inquiry itself, rules 264 and 265 apply as far as possible (rule 266).
- None of the six rules prints a form, a fee or a time limit.
Read next
- Rules 255, 256, 257 and 260: practitioner register and certificate
- Rules 261, 262, 265 and 268: practitioner misconduct inquiry
- Rules 311, 312, 314, 325, 326 and 328: winding up and amendment of funds
- Rule 175: prescribed authority for a section 270(8) notice
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.