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

Last updated: 22 December 2023

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The Central Board of Direct Taxes has issued the Income-tax (Twenty-Ninth Amendment) Rules, 2023. These rules amend the Income-tax Rules, 1962, and come into effect from 1st April 2024. A key amendment clarifies the definition of 'intra-group loan' concerning loans advanced to non-resident associated enterprises.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 19th December, 2023
(INCOME-TAX)

G.S.R. 900(E).—In exercise of the powers conferred by sub-section (2) of section 92CB 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-Ninth Amendment) Rules, 2023.

(2) Save as otherwise provided in these rules, they shall come into force from the 1st day of April, 2024.

2. In the Income-tax Rules, 1962,–

(a) in rule 10TA, with effect from the date of publication of this notification in the Official Gazette,—

(i) for clause (f), the following clause shall be substituted, namely:-

‘(f) “intra-group loan” means loan advanced to an associated enterprise being a non-resident, where the loan—

(i) 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; and

For full notification please refer to the attachment

FAQ :

These are new rules introduced by the Central Board of Direct Taxes to further amend the existing Income-tax Rules, 1962.

These rules generally come into force from the 1st day of April, 2024, although some provisions may take effect from the date of their publication in the Official Gazette.

The rules introduce a substituted clause (f) in rule 10TA, which provides a definition for 'intra-group loan' in the context of loans to non-resident associated enterprises.

The rules were issued by the Central Board of Direct Taxes under the powers conferred by the Income-tax Act, 1961.