Income-tax (Twenty Third Amendment) Rules, 2022 - 87/2022 - Income Tax

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION NO. 87/2022 New Delhi, the 1st August, 2022 INCOME-TAX G.S.R. 610 (E) .- In exercise of the powers conferred by clause (4E) of section 10 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,1962 , namely:─ 1. Short title and commencement.- (1) These rules may be called the Income-tax (Twenty Third Amendment) Rules, 2022. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 21AK , - (A) in sub-rule (1), - (a) in the opening paragraph, after the words non-deliverable forward contracts , the words or offshore derivative instruments or over-the-counter derivatives, shall be inserted; (b) in clause (i), after the words non-deliverable forward contract , the words or offshore derivative instrument or over-the-counter derivative shall be inserted; (c) in clause (ii), after the word contract , the words , instrument or derivative shall be inserted; (B) for the Explanation, following shall be substituted, namely:- Explanation. -For the purpose of this rule, the expression,- (i) derivative shall have the same meaning as assigned to it in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956(42 of 1956); (ii) a non-deliverable forward contract shall mean a contract for the difference between an exchange rate agreed before and the actual spot rate at maturity, with the spot rate being taken as the domestic rate or a market determined rate and such contract being settled with a single payment in a foreign currency; (iii) offshore banking unit means a banking branch Unit located in an International Financial Services Centre, as referred to in sub-section (1A) of section 80LA of the Act; (iv) offshore derivative instrument shall have the same meaning as assigned to it in clause (o) of sub-regulation (1) of regulation (2) of the SEBI Foreign Portfolio Investor Regulations, 2019; (v) over-the-counter derivatives shall mean a derivative contract that is not traded on an exchange but instead is privately negotiated between a purchaser and a seller; and (vi) permanent establishment shall have the meaning as assigned to it in clause (iiia) of section 92F of the Act. [F. No. 370142/36/2022-TPL] UMME FARDINA ADIL, Under Secy. (Tax Policy and Legislation Division) Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Subsection (ii), vide notification number S.O. 969(E) dated the 26th March, 1962 and were last amended vide notification number G.S.R. 537(E) dated the 12th July, 2022.