CBDT Amends 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 was made by CBDT 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.

The notification introduces the twelfth amendment to the Income Tax Rules 1962, specifically addressing proposals related to International Financial Services Centers (IFSC) mentioned in the Finance Act 2023.

The Notification amends Income Tax rule 21AK and rule 114AAB. The amendment primarily focuses on provisions related to non-resident income, offshore banking units, alternative investment funds, and reporting requirements.

It provides exemptions for income accrued from non-deliverable forward contracts or offshore derivative instruments, subject to specified conditions.

The amendment also revises reporting form (FORM NO. 10CCF Report under section 80LA(3) of the Income-tax Act, 1961) and clarifies the eligibility criteria for deductions under section 80LA.

Notification No. 50/2023-Income Tax [G.S.R. 514(E)]

Date: 17/07/2023