The Central Board of Direct Taxes (CBDT) has issued Notification No. 133/2025, introducing significant changes to the Income-tax Rules, 1962 through the Income-tax (Twenty Second Amendment) Rules, 2025.
As per the notification, two new provisions - Rule 3C and Rule 3D - have been inserted to define income thresholds for specific purposes under Section 17(2) of the Income-tax Act, 1961.
- Rule 3C specifies that for the purposes of item (c) of sub-clause (iii) of clause (2) of Section 17, the prescribed salary income shall be Rs 4 lakh.
- Rule 3D states that for clause (vi) of the proviso to clause (2) of Section 17, the prescribed gross total income shall be Rs 8 lakh.
These changes aim to provide clarity in computation under the head "Salaries" and streamline income categorization under Section 17 of the Act.
The amendment came into effect immediately upon its publication in the Official Gazette on August 18, 2025.
This is part of the government's broader efforts to simplify tax administration and provide certainty in income-tax provisions, especially concerning salaried taxpayers.
Official copy of the notification has been attached
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