CIRCULARS AND NOTIFICATIONS

Circulars and Notifications

Circulars

• Circulars are issued by the CBDT from time to time to deal with certain specific problems and
to clarify doubts regarding the scope and meaning of certain provisions of the Act.
• Circulars are issued for the guidance of the officers and/or assessees.
• The department is bound by the circulars. While such circulars are not binding on the
assessees, they can take advantage of beneficial circulars.

Notifications

• Notifications are issued by the Central Government to give effect to the provisions of the Act.
For example, under section 10(15)(iv)(h), interest payable by any public sector company in
respect of such bonds or debentures and subject to such conditions as the Central
Government may, by notification in the Official Gazette, specify in this behalf would be
exempt. Therefore, the bonds and debentures, interest on which would qualify for exemption
under this section are specified by the Central Government through Notifications.
• The CBDT is also empowered to make and amend rules for the purposes of the Act by issue
of notifications.

For example, under section 35CCD, the CBDT is empowered to prescribe guidelines for
notification of skill development project. Accordingly, the CBDT has, vide Notification No.
54/2013 dated 15.7.2013, prescribed Rule 6AAF laying down the guidelines and conditions
for approval of skill development project under section 35CCD.