The Ministry of Finance (MoF) on January 27, 2025, issued the Income-tax (Second Amendment) Rules, 2025, to further amend the Income-tax Rules, 1962.
The following has been stated namely: -
• After rule 2DA, a new rule, “2DAA” shall be inserted. It states that a Venture Capital Fund under clause 23FB of section 10 is treated as a Category I Alternative Investment Fund regulated by the IFSCA Fund Management Regulations, 2022.
• After rule 21AC, a new rule, “21ACA” shall be inserted. It states that a Finance Company in an IFSC under section 94B can perform specified financial activities, and its interest payments on foreign currency debt must comply with IFSCA regulations.
• In rule 21AIA, after sub-rule (3), a new sub-rule (4), shall be inserted. It states that the Retail schemes and ETFs under clause 4D of section 10 must meet specified investor, investment, and regulatory conditions as per IFSCA Fund Management Regulations, 2022.
[Notification no. - G.S.R. 76(E)]
