Income-tax Rules, 2026 | Rule 118 of 333

Rule 118 - Relief in tax payable due to operation of section 206(1)(i)

Reviewed by CA Nikhil Gupta · Last reviewed 29 August 2026

Local extract available Legacy mapping: 10RB

118Rule number

1696Local text characters

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Source and status control

Primary authority: Notification No. 22/2026 / G.S.R. 198(E)

Currentness control: Base Rules effective 1 April 2026. Check later amendments, corrigenda and portal implementation before action.

Local statutory extract - official source controls

Rule text held in the production corpus

Relief in tax payable under section 206(1) due to operation of section 206(1)(i). 118. (1) For the purposes of section 206(1)(i), the tax payable by the assessee company under section 206(1), for the tax year referred to in that section, shall be reduced by the following amount, namely, (A - B) - (C - D), where— A = tax payable under section 206(1) on the book profit of the tax year including the past income (taken as zero if no tax is otherwise payable); B = tax payable under section 206(1) on the book profit of the tax year excluding the past income (taken as zero if no tax is otherwise payable); C = the aggregate tax payable under section 206(1) on the book profit of the past year(s), after increasing it with the relevant past income (taken as zero if no tax is otherwise payable); D = the aggregate tax payable under section 206(1) on the book profit of the past year(s) to which the past income belongs (taken as zero if no tax is otherwise payable). (2) Where the amount so computed under sub-rule (1) is negative, it shall be deemed to be zero. (3) For the purposes of this rule, "past income" means income of an earlier tax year that has been included in the book profit of the current tax year as a consequence of an advance pricing agreement entered into under section 168 or a secondary adjustment made under section 170. (4) The tax credit allowable under section 206(1)(m) shall be reduced by the amount of relief granted to the assessee under sub-rule (1). (5) A claim for relief under this rule shall be made by furnishing Form No. 53, verified in the manner specified therein by the person authorised to verify the return of income of the assessee under section 265.

Local extract SHA-256: ebc389ffc73e4c231839efe9a5edc961428d06cc00ea1a21c36f3f381c8ccd50. This hash authenticates the local extract only; it does not certify that every amendment, table or Gazette footnote has been consolidated.

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Related sections

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Related Forms

Form 53

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Official starting point: www.incometaxindia.gov.in

Page source links

Notification No. 22/2026 / G.S.R. 198(E)

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