Draft Income-tax Rules 2026 Define Key Terms and Recognise Accountancy Examinations to Regulate Income-tax Practitioners
Draft Rules 250 and 251 of the Income-tax Rules 2026 define key terms related to income-tax practitioners and recognise specific accountancy examinations for eligibility under Section 515.
Rules 250 and 251 of the Draft Income-tax Rules, 2026 lay down definitions and qualification standards applicable to income-tax practitioners for the purposes of Rules 251 to 268 under the Income-tax Act 1961. Rule 250 provides key definitions used in the regulatory framework governing authorised representatives and income-tax practitioners. It defines an “authorised income-tax practitioner” as a person who qualifies as an authorised representative under Section 515 of the Income-tax Act, particularly under clauses relating to individuals eligible to represent taxpayers before tax authorities. The rule also defines the “specified authority” and “prescribed authority” as senior tax officials such as the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner who exercise jurisdiction over cases involving alleged professional misconduct by income-tax practitioners. In addition, the rule clarifies that the term “adjudicating authority” carries the same meaning as provided under the Insolvency and Bankruptcy Code 2016, and it also defines the “register” as the official register of income-tax practitioners maintained under the rules. Rule 251 complements these definitions by listing the accountancy examinations that are recognised for the purpose of qualifying as an authorised income-tax practitioner. These include the National Diploma in Commerce (with Advanced Accountancy and Auditing), Government Diploma in Company Secretaryship, the Final Examination of the Institute of Company Secretaries of India, the Final Examination of the Institute of Cost Accountants of India, departmental examinations conducted by the Central Board of Direct Taxes for tax officers, and the Revenue Audit Examination conducted by the Comptroller and Auditor General of India. Collectively, these provisions create a structured framework for recognising qualified professionals and ensuring that individuals representing taxpayers before authorities possess the necessary academic credentials and professional competence.
Extract of Rule No. 250,251 of Draft Income-tax Rules, 2026
Rule 250
Definitions for the purposes of rules 251 to 268
For the purposes of rules 251 to 268:–
1. “authorised income-tax practitioner” means any authorised representative as defined in Section 515(3)(v) or 515(3)(vi).
2. “specified authority” shall be the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be.
3. “prescribed authority” for the purpose of Section 515(5) (b) shall be the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner having jurisdiction over the case in the proceedings connected with which the income-tax practitioner is alleged to be guilty of misconduct.
4. “adjudicating authority” shall have the same meaning as assigned to it in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).
(5)”register” means the register of income-tax practitioners referred to in rule 255
Rule 251
Accountancy examinations recognised.
The following accountancy examinations are recognized for the purpose of section 515(3)(v):-
1. 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 has taken Advanced Accountancy and Auditing as an elective subject for the Diploma Examination.
2. Government Diploma in Company Secretaryship awarded by the Department of Company Affairs, under the Ministry of Industrial Development and Company Affairs, New Delhi.
3. Final Examination of the Institute of Company Secretaries of India, New Delhi.
4. The Final Examination of The Institute of Cost Accountants of India constituted under the Cost and Works Accountants Act, 1959 (23 of 1959).
5. 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’, as the case may be.
6. The Revenue Audit Examination for Section Officers conducted by the Office of the Comptroller and Auditor General of India.
