Rule 331 - Procedure for approval under Paragraph 1(z)(i) and (ii) of Schedule XV to the Act
Local extract available Legacy mapping: Not recorded
For the connected rule or filing step, see Section 80C and Schedule XV Deduction Planner.
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.
Rule text held in the production corpus
Local extract SHA-256: 274b2b7e7371acd1c3be46b3a2c715358a556f3811d48e47d968cc7f6ea1a447. This hash authenticates the local extract only; it does not certify that every amendment, table or Gazette footnote has been consolidated.
Rule map
Related sections
Use the title and official text to identify the governing section; no local section reference is asserted.
Related Forms
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Finin2min implementation framework
Trigger and scope
Rule 331 governs the CBDT approval application itself, not the underlying deduction claim - it applies to a public company seeking approval under Schedule XV paragraph 1(z)(i), or a Mutual Fund under paragraph 1(z)(ii), before either can raise an eligible infrastructure capital issue. The application form differs by applicant type: Form No. 189 for a public company, Form No. 190 for a Mutual Fund.
Evidence and control
A public-company application needs its Certificate of Incorporation and 3 years’ (or its full existence’s) audited balance sheet and P&L, filed 3 months before the capital issue; a Mutual Fund application needs its SEBI registration certificate plus the same audited financials on the same 3-month timeline. The 3-month pre-filing window is the operative deadline, not the issue date itself.
Consequence
Post-approval, the applicant must invest ALL paid-up capital raised via equity/debentures on a fixed schedule: at least 25% within 1 year of approval, the remainder within 3 years. Missing either the investment schedule (sub-rule 3) or the annual accountant’s certificate under section 515(3)(b) (sub-rule 4) gives the Board grounds to WITHDRAW the approval already granted - this is a continuing compliance obligation, not a one-time application hurdle.
Transaction application
Identify whether the applicant is a public company or a Mutual Fund (the form and supporting documents differ), the date the Board’s approval was granted (the 1-year and 3-year investment clocks run from that date, not from the application date), and whether each year’s accountant’s certificate under section 515(3)(b) was actually filed.
Authority, consent and execution
Approval and withdrawal decisions rest with the Central Board of Direct Taxes, not a local Assessing Officer. Sub-rule (2) requires a reasonable hearing opportunity before any denial - confirm that procedural step was followed if an application was refused.
Evidence and retention checklist
Retain the approval order, the Form 189/190 application with its Certificate of Incorporation or SEBI registration and audited financials, the year-by-year investment record against the 25%-in-1-year/remainder-in-3-years schedule, and each year’s section 515(3)(b) accountant’s certificate.
Limitation, forum and remedies
The 1-year and 3-year investment deadlines and the 3-month pre-filing window are fixed by this Rule, not general limitation periods. Check the applicable appeal route if an approval is withdrawn under sub-rule (5).
Cross-law overlays
Check Schedule XV paragraph 6(i) for the eligible capital issue definition, SEBI registration requirements for Mutual Fund applicants, alongside the notified Income-tax Rules, 2026 provisions governing this approval procedure.
Finin2min Q&A
Is this page the notified Rule?
It contains a local statutory extract, but the linked official source and later amendments control.
What should be verified immediately before use?
Effective date, amendment history, forms or utilities, filing channel, authentication method, due date, fees, transition from the 1962 Rules and any judicial interpretation.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Official starting point
- www.incometaxindia.gov.in