CBDT Introduces Rule 3C & 3D under Income Tax Rules: Key Changes for Salaried Taxpayers

The Central Board of Direct Taxes (CBDT) has recently issued a notification (Notification No. 133/2025/F. No. 370142/27/2025-TPL dated August 18, 2025) in which the Central Government has introduced some changes to the Income-tax Rules, 1962. The amendment aims to offer more clarity on the specified limits for salary. Let us know the key changes introduced as per the notification.

The amended rules will now be known as the Income Tax (Twenty-Second Amendment) Rules, 2025, and they will be applicable from the date of their publication in the official gazette.

After Rule 3B of the Income Tax Rules, 1962, a new rule called “3C. Salary income for the purposes of item (c) of sub-clause (iii) of clause (2) of section 17 of the Act” will be added. This rule specifies that under Section 17(2)(iii)(c) of the Income Tax Act, the prescribed income under the head “salaries” shall be Rs 4 lakh.

Another rule called “3D. Gross total income for the purposes of clause (vi) of Proviso to clause (2) of section 17 of the Act” will also be added after rule 3B of the Income Tax Rules, 1962. This rule states that under Section 17(2)(vi) of the Act, the specified gross total income shall be Rs 8 lakh.