New Safe Harbour Rules for Foreign Diamond Miners: Declare 4%+ Income, No Set-Offs Allowed, File Form 3CEFC for Eligibility.

CBDT amends the Income-tax Rules, 1962 to introduce safe harbour rules for determining income referred to in clause (i) of sub-section (1) of section 9 of the Income-tax Act, 1961, chargeable to tax under the head "Profits and gains of business or profession". The key provisions are: For an eligible foreign company engaged in diamond mining business selling raw diamonds in a notified special zone, the income chargeable under this head shall be accepted as 4% or more of the gross receipts from such business, if the company exercises this safe harbour option. An "eligible assessee" has been defined as a foreign company engaged in diamond mining which opts for these safe harbour rules. "Raw diamonds" have been specifically defined. If the safe..... .....

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