The Central Board of Direct Taxes (CBDT) vide notification no. G.S.R. 514(E) published on 17th July 2023 has amended the Income Tax Rules, 1962 in view of IFSC Related Proposals in Finance Act 2023. The new amendment may be called as Income-tax (Twelfth Amendment) Rules, 2023. The amendment also substituted Form No. 10CCF and Form No. 64D.
In exercise of the powers conferred by clause (i) of sub-section (3) of section 80LA, clause
(4E) of section 10, sub-section (7) of section 115UB, clause (d) of sub-section (8) of section 139A and clause (ii) of sub-section (7) of section 206AA read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules.
“(1) The income accrued or arisen to, or received by, a non-resident as a result of
(a) transfer of non-deliverable forward contracts or offshore derivative instruments or over-the counter derivatives; or
(b) distribution of income on offshore derivative instruments, under clause (4E) of section 10 of the Act, shall be exempted subject to fulfilment of the following conditions, namely:—
(i) the non-deliverable forward contract or offshore derivative instrument or over-the-counter derivative is entered into by the non-resident with an offshore banking unit of an International Financial Services Centre which holds a valid certificate of registration granted under International Financial Services Centres Authority (Banking) Regulations, 2020 by the International Financial Services Centres Authority; and
(ii) such contract, instrument or derivative is not entered into by the non-resident through or on behalf of its permanent establishment in India.”;
‘(a) “specified fund” means any fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category I or Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019) and which is located in any International Financial Services Centre or a specified fund referred to in sub-clause (i) of clause (c) of Explanation to clause (4D) of section 10;’.
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