The Central Board of Direct Taxes (CBDT) on July 17, 2023, published the Income-tax (Twelfth Amendment) Rules, 2023 to further amend the Income-tax Rules, 1962
This shall come into force on July 17, 2023
The following has been amended namely: -
• In rule 21AK which states “the conditions for the income accrued or arisen to, or received by, a non-resident as a result of the transfer of non-deliverable forward contracts” for sub-rule (1), the following sub-rule shall be substituted, namely:—
“(1) The income accrued or arisen to, or received by, a non-resident as a result of the
(a) transfer of non-deliverable forward contracts or offshore derivative instruments or over-the-counter derivatives;
(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.
(ii) such contract, instrument or derivative is not entered into by the non-resident through or on behalf of its permanent establishment in India.”
• The Form No. 10CCF shall be substituted.
[Notification No. G.S.R. 514(E)]
