CBDT notifies Income Tax (7th Amendment) Rules 2019

The central board of Direct taxes vide notification dated 16th September 2019, has made the income tax (7ThAmendment) Rules 2019.

The amendment omits proviso to Rule 2F (5) of income tax Rules, 1962 which specifies the guidelines for setting up an infrastructure debt fund for the purpose of exemption under section 10(47).

sub-Clause (5) of Rule 2F states that, in case of an investor in the aforesaid rupee denominated bonds issued by the infrastructure debt fund is a non-resident, the original or initial maturity of bond, at time of 1st investment by such non-resident investor shall not be less 5 years.

Provided that the investment made by a non-resident investor in such bonds shall be subject to a lock in period of not less than 3 years, but the non-resident investor may transfer the bond to another non-resident within such lock in period. This proviso has been omitted with this amendment.

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