Sections 532 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.
Sections 532 to 535 of the Income-tax Act, 2025 are the Act's rule-making and housekeeping provisions. Section 532 lets the Central Government frame schemes to reduce interface with the assessee; section 533 gives the Board its general and specific power to make rules; section 534 requires rules and certain notifications to be laid before Parliament; and section 535 lets the Central Government remove difficulties by order within a time limit.
This explanation is as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. Under section 1(3) the Act came into force on the 1st April, 2026, save as otherwise provided. Later amendments, rules and notifications should be checked. The Income-tax Rules, 2026 are made under these powers; this note names no rule of those Rules, whose detail is left to the Rules themselves.
The Central Government may, by notification, make a scheme to make assessment more efficient, transparent and accountable, including by eliminating interface with the assessee to the extent technologically feasible (section 532). The Board, subject to the control of the Central Government, may make rules for carrying out the Act (section 533). Rules are laid before Parliament for thirty days (section 534). The removal-of-difficulties power cannot be used after three years from 1 April 2026 (section 535). For queries on how rules affect you, see our legal consultation service.
Section 532: power to frame schemes
Sub-section (1)
The Central Government may, by notification, make a scheme for any of the purposes of the Act, so as to impart greater efficiency, transparency and accountability by:
- (a) eliminating the interface with the assessee or any other person to the extent technologically feasible; and
- (b) optimising utilisation of resources through economies of scale and functional specialisation.
Sub-section (2)
For giving effect to a scheme, the Central Government may, by notification, direct that any provision of the Act shall not apply or shall apply with such exceptions, modifications and adaptations as the notification specifies.
Sub-section (3)
Where a scheme has been notified under the provisions of the Income-tax Act, 1961 (43 of 1961) with a view to eliminating the interface with the assessee or any other person, the Central Government may, by notification, amend or modify that scheme as per sub-section (1), and sub-section (2) applies accordingly. The reference to the 1961 Act is quoted as printed; section 536(2)(u) deals with how such a scheme is carried over; see our note on section 536(2)(l) to (v), (3) and (4).
Sub-section (4)
Every notification under sub-sections (1), (2) and (3) shall, as soon as may be after it is issued, be laid before each House of Parliament. The schemes actually notified are not in the text consulted.
Section 533: power to make rules
Sub-section (1): the general power
The Board may, subject to the control of the Central Government, by notification, make rules for carrying out the purposes of the Act.
Sub-section (2): the particular matters
Without prejudice to the general power, rules may provide for the following. The Act lists them as clauses (a) to (zb); the table groups them for reading.
| Clauses | Subject of rules |
|---|---|
| (a), (b), (c) | Ascertainment of classes of income; the manner of arriving at income for persons with mixed agricultural and business income, persons residing outside India, operations or transactions of non-residents and individuals liable under section 99(3) and (4); valuation of perquisites |
| (d), (e), (f), (g) | Percentage of written down value for depreciation of buildings, machinery, plant or furniture; the matters specified in section 62; conditions for deduction of rent under section 134; the matters specified in Chapter XI |
| (h), (i), (j), (k) | Allotment and quoting of Permanent Account Number under section 262; documents not to be furnished with the return; classes of persons furnishing returns electronically; cases, assets and expenditure limits under section 263(2)(b) |
| (l), (m), (n) | Form of the audit or inventory valuation report under section 268(5); Approving Panel under section 274; information on payment of sums under section 397(3)(d) |
| (o), (p), (q) | Authority to be prescribed; procedure for double taxation agreements; procedure for relief under sections 159 and 160 |
| (r), (s), (t), (u), (v) | Form and manner of applications, claims, returns and information, and fees; verification of documents; refund procedure; calculation of interest, rounding of periods and ignoring petty amounts; regulation of matters under section 420 |
| (w), (x) | Appeals and cross-objections: form, manner and fee, and service of intimation under section 358(3)(b); permission to produce evidence before the Joint Commissioner (Appeals) or the Commissioner (Appeals) |
| (y), (z), (za), (zb) | Form of statement under section 507; register of persons other than legal practitioners or accountants practising before income-tax authorities, and the authority in section 515(5); certificates verifying payment of tax; any other matter prescribed |
The clause (c) wording on perquisites says the value is to be determined "in such manner and on such basis as appears to the Board to be proper and reasonable". Several clauses refer to other sections, for example section 507 (see our note on sections 505 to 507) and section 515 (see section 515).
Sub-section (3): estimates where income cannot be ascertained
In cases under sub-section (2)(b), where the income liable to tax cannot be definitely ascertained, or can be ascertained only with an amount of trouble and expense to the assessee which is unreasonable, the rules may:
- (a) prescribe methods by which an estimate of the income may be made; and
- (b) in cases of income derived partly from agriculture and partly from business, specify the proportion of the income that shall be deemed to be income liable to tax,
and an assessment based on such estimate or proportion is deemed to be duly made as per the Act.
Sub-section (4): retrospective effect
The power includes giving retrospective effect, from a date not earlier than the date of commencement of the Act, to the rules or any of them. Unless the contrary is permitted, expressly or by necessary implication, no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.
Section 534: laying before Parliament
The Central Government shall cause to be laid, as soon as may be after it is made or issued, before each House of Parliament:
- (a) every rule made under the Act;
- (b) rules of procedure framed by the Appellate Tribunal under section 364; or
- (c) every notification issued under sections 263(3) and 264 and Chapter XIII-G,
while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions. If, before the expiry of the session immediately following, both Houses agree in making any modification in the rule or notification, or agree that it should not be made or issued, it has effect only in the modified form or is of no effect, as the case may be. Any modification or annulment is without prejudice to the validity of anything previously done under that rule or notification.
Section 535: removal of difficulties
Sub-section (1)
If any difficulty arises in giving effect to the provisions of the Act, the Central Government may, by general or special order, do anything not inconsistent with those provisions that appears to it necessary or expedient to remove the difficulty.
Sub-section (2)
Without prejudice to that power, an order may provide for the adaptations or modifications subject to which the Income-tax Act, 1961 (43 of 1961) shall apply in relation to the assessments for the tax year ending on the 31st March, 2026, or any earlier tax year. The text is quoted as printed.
Sub-sections (3) and (4)
No order under sub-section (1) shall be made after the expiration of three years from the 1st April, 2026. Every order made under the section shall be laid, as soon as may be, before each House of Parliament.
| Section | Authority | Instrument | Parliamentary step |
|---|---|---|---|
| 532 | Central Government | Notification (scheme; directions on application of the Act) | Laid before each House as soon as may be |
| 533 | Board, subject to Central Government's control | Notification (rules) | Laid under section 534 for thirty days |
| 534 | Central Government | Laying of rules, Tribunal procedure rules and specified notifications | Thirty days in session; modification or annulment possible |
| 535 | Central Government | General or special order | Laid as soon as may be; no order after three years from 1 April 2026 |
A worked example (names and dates assumed)
Suppose the Central Government, by notification under section 532(1), makes a scheme for a class of assessments that reduces interface with the assessee, and under section 532(2) directs that a provision of the Act applies with specified adaptations. (The scheme and its contents are assumed for illustration.)
- The notification must be laid before each House of Parliament as soon as may be after it is issued (section 532(4)).
- Separately, suppose the Board makes a rule on a matter listed in section 533(2) and gives it retrospective effect from the date of commencement of the Act, 1 April 2026. Section 533(4) allows that, but the rule may not prejudicially affect assessees unless the contrary is permitted expressly or by necessary implication.
- The rule is laid under section 534 for a total of thirty days of session. If both Houses agree to a modification, the rule has effect in modified form, and anything done under it before then remains valid.
- If a difficulty arises in giving effect to the Act, an order under section 535(1) can be made only until the expiration of three years from 1 April 2026; none can be made after that.
Need help with the rules?
The Act leaves a large part of procedure to the rules, so a return, claim or statement often depends on the rule as well as the section. Our legal consultation team can help you read the two together.
Key takeaways
- Schemes under section 532 aim at efficiency, transparency and accountability, including removing the interface with the assessee to the extent technologically feasible.
- A scheme notification may direct that provisions of the Act apply with exceptions, modifications and adaptations (section 532(2)).
- The Board makes rules, subject to the control of the Central Government (section 533(1)); section 533(2) lists particular matters, clauses (a) to (zb).
- Retrospective rules cannot start before the commencement of the Act and cannot prejudice assessees unless the contrary is permitted (section 533(4)).
- Rules are laid for thirty days of session, and modification or annulment does not undo things already done (section 534).
- No removal-of-difficulties order can be made after three years from 1 April 2026 (section 535(3)).
Read next
- Sections 527 to 531: powers on mineral oil, condonation and withdrawal of approval
- Section 536: repeal of the 1961 Act and savings for proceedings
- Income-tax Act 2025: effective date and transition provisions
- Chapter XXIII guide: miscellaneous provisions
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.