Income-tax Twenty-fourth Amendment Rules, 2023

Last updated: 11 October 2023

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The Central Board of Direct Taxes has issued the Income-tax (Twenty-fourth Amendment) Rules, 2023. These rules, effective from their publication date, introduce specific amendments to the Income-tax Rules, 1962. Key changes include modifications to rule 114B concerning transactions and declarations for certain individuals and foreign companies.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 10th October, 2023

G.S.R. 728(E).— In exercise of the powers conferred by clause (vii) of sub-section (1), clause (c) subsection (5) and sub-section (6A) of section 139A 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-fourth Amendment) Rules, 2023.

(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 114B,––

(a) in the second proviso, for the words “Provided further that any person”, the words “Provided further that any person, not being a company or a firm,” shall be substituted;

(b) after second proviso, the following proviso shall be inserted, namely: –– “Provided also that a foreign company who,––

(i) does not have any income chargeable to tax in India; and

(ii) does not have a permanent account number, and enters into any transaction referred to at Sl. No. 2 or 12 of the Table, in an IFSC banking unit, shall make a declaration in Form No. 60:”;

(c) in the Explanation, clause (1) shall be re-numbered as (1A) and before the said clause as so re-numbered, the following clause shall be inserted, namely: ––

For full notification please refer to the attachment

FAQ :

These are new rules made by the Central Board of Direct Taxes to further amend the Income-tax Rules, 1962, and they come into force from the date of their publication in the Official Gazette.

The rules amend rule 114B of the Income-tax Rules, 1962, by substituting certain words and inserting a new proviso regarding declarations for foreign companies and specific transactions.

A foreign company that does not have income chargeable to tax in India, does not have a permanent account number, and enters into specific transactions (Sl. No. 2 or 12 of the Table) in an IFSC banking unit, needs to make a declaration in Form No. 60.

Yes, the rules substitute words in the second proviso of rule 114B, stating 'Provided further that any person, not being a company or a firm,'.

These rules shall come into force from the date of their publication in the Official Gazette.