Rules 254 to 257 of the Draft Income-tax Rules, 2026 provide a regulatory framework governing authorised representation and the registration of income-tax practitioners under Section 515 of the Income-tax Act.
Rule 254 clarifies that in certain situations, a company or limited liability partnership may be represented by a person appointed by the Adjudicating Authority under the Insolvency and Bankruptcy Code 2016, such as an interim resolution professional, resolution professional, or liquidator, who may act as an authorised representative for tax proceedings.
Rule 255 requires the specified tax authority—such as the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner—to maintain an official register of authorised income-tax practitioners who have been granted registration certificates.
Rule 256 prescribes the procedure for obtaining such registration. Any individual seeking recognition as an income-tax practitioner must submit an application to the jurisdictional Chief Commissioner or Commissioner in Form No. 171, along with documentary evidence establishing eligibility under the relevant provisions of Section 515. The applicant may also be required to furnish additional information as requested by the authority during the evaluation process.
Rule 257 governs the issuance of the certificate of registration. Where the specified authority is satisfied that the applicant fulfils the prescribed eligibility conditions and has been practising before income-tax authorities for at least one year prior to the application, the authority will enter the applicant’s name in the official register and issue a certificate of registration. Together, these provisions establish a structured mechanism for recognising qualified practitioners and regulating authorised representation before income-tax authorities.
Extract of Rule No. 254,255,256,257 of Draft Income-tax Rules, 2026
Rule 254
Appearance by Authorised Representative in certain cases
For the purposes of section 515(3)(ix), any other person, in respect of a company or a limited liability partnership, as the case may be, shall be the person appointed by the Adjudicating Authority for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and the rules and regulations made thereunder.
Rule 255
Register of income-tax practitioners
Every specified authority shall maintain a register of authorized income-tax practitioners to whom certificates of registration have been issued by him under rule 257.
Rule 256
Application for registration
1. Any person who wishes to have his name entered as an authorised income- tax practitioner in the register shall apply to the Chief Commissioner or Commissioner within whose area of jurisdiction he has been practising.
2. The application shall be made in Form No. 171 and shall be accompanied by documentary evidence regarding his eligibility for income-tax practice under section 515(3)(v) or 515(3)(vi) or 515(3)(vii) or 515(3)(viii).
3. The applicant shall also furnish such further information as the Chief Commissioner or Commissioner may require in connection with the disposal of the application.
Rule 257 Certificate of registration
If the specified authority is satisfied that the applicant fulfils the requirements of section 515(3)(v) or 515(3)(vi) or 515(3)(vii) or 515(3)(viii) and has been practicing before income-tax authorities for not less than one year on the date of the application, the specified authority shall enter the name of the applicant in the register and issue him a certificate of registration.
