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Taxation Central Ministry of Finance Income Tax Act, 1961

Income-tax (Seventeenth Amendment) Rules, 2023

17-Aug-2023 | G.S.R. 607(E)

Central Board of Direct Taxes (CBDT) has issued the Income-tax (Seventeenth Amendment) Rules, 2023, effective from 17th August 2023. By virtue of this amendment, the Income-tax Rules, 1962, Rule 26 of the principal rules has been substituted with the following rule: Rule 26. Rate of Exchange for Deduction of Tax at Source on Income Payable in Foreign Currency: For the purpose of deducting tax at source on any income payable in foreign currency, the rate of exchange for calculating the value in rupees of such income payable shall be as follows: a. For an assessee located outside India. b. For a Unit located in an International Financial Services Centre c. By a Unit located in an International Financial Services Centre to an assessee in India The rate of exchange used will be the telegraphic transfer buying rate of the relevant currency on the date when the tax deduction is required under the provisions of Chapter XVIIB. This rule applies to the person responsible for paying the said income. Note: 1. International Financial Services Centre has the same meaning as assigned in clause (q) of section 2 of the Special Economic Zones Act, 2005. 2. Telegraphic transfer buying rate refers to the rate or rates of exchange adopted by the State Bank of India, as per the guidelines specified by the Reserve Bank of India. This applies when such currency is acquired by the State Bank of India through a telegraphic transfer. 3. Unit has the same meaning as assigned in clause (zc) of section 2 of the Special Economic Zones Act, 2005.

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