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Taxation Central Ministry of Finance Income Tax Act, 1961

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

19-Dec-2023 | G.S.R. 900(E)

Ministry of Finance has issued Income-tax (Twenty-Ninth Amendment) Rules, 2023, effective from 1st April 2024.

The key highlights are:

1. Substitution in 10TA(f):

The definition of "intra-group loan" is substituted. It now means a loan advanced to an associated enterprise being a non-resident, where the loan:
Is not advanced by an enterprise, being a financial company including a bank or a financial institution or an enterprise engaged in lending or borrowing in the normal course of business.
Does not include a credit line or any other loan facility that has no fixed term for repayment.

2. Insertion of Explanation in rule 10TD(2A):

a. A new explanation is inserted in rule 10TD(2A). For this sub-rule:
"Reference rate" means specific rates for different currencies, including 6-month Term Secured Overnight Financing rate (SOFR) for US dollar, 6-month Euro Inter Bank Offered Rate (EURIBOR) for Euro, 6-month Term Sterling Overnight Index Average (SONIA) for UK Pound Sterling, 6-month Tokyo Term Risk-Free Rate (TORF) for Japanese Yen, 6-month Bank Bill Swap Rates (BBSW) for Australian dollar, and 6-month Compounded Singapore Overnight Rate Average (SORA) for Singapore dollar, each increased by specific basis points.

b. "Credit rating" means the credit rating assigned to the associated enterprise by a Securities and Exchange Board of India registered and Reserve Bank of India accredited credit rating agency applicable for the relevant previous year.

For detailed information, please refer to the attached document.

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