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Taxation Central Ministry of Finance Income Tax Act, 1961

Income-tax (Twenty-fourth Amendment) Rules, 2023

10-Oct-2023 | G.S.R. 728(E)

Ministry of Finance has issued Income-tax (Twenty-fourth Amendment) Rules, 2023, effective from 10th October 2023. The key highlights of the amendment are as follows: 1. Amendment to Rule 114B: a. The second proviso of Rule 114B is being amended. The change specifies that the subsequent provision applies to individuals, excluding companies or firms. b. An additional proviso is being added, which pertains to foreign companies. It states that if a foreign company, which has no taxable income in India and no permanent account number (PAN), engages in transactions listed under Sl. No. 2 or 12 of the Table within an IFSC (International Financial Services Centre) banking unit, it must make a declaration using Form No. 60. 2. Definition of IFSC Banking Unit: The explanation section is being amended to provide a definition of an "IFSC banking unit." It is defined as a financial institution that meets the criteria defined under clause (c) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019. This institution must also be licensed or permitted by the International Financial Services Centres Authority to conduct permissible activities under the International Financial Services Centres Authority (Banking) Regulations, 2020. 3. Insertion of Rule 114BA: A new rule, Rule 114BA, is being introduced. It outlines exceptions to the provisions of this rule. This rule won't apply in cases where: The deposit or withdrawal of an amount (other than cash) or the opening of a current account (not a cash credit account) is carried out by a non-resident (excluding companies) or a foreign company. The transaction is conducted with an IFSC banking unit. Such non-resident or foreign company does not have any taxable income in India.

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