Income-tax (Twenty Third Amendment) Rules, 2022

The Ministry of Finance on 1st August, 2022 issued notification amending the Income-tax Rules, 1962. The Income-tax (Twenty Third Amendment) Rules, 2022 further amends the principal rules to insert definition of certain expressions:

  1. “A non-deliverable forward contract” shall mean a contract for the difference between a exchange rate agreed before and the actual spot rate at maturity, with the spot rate being taken as the domestic rate or a market determined rate and such contract being settled with a single payment in a foreign currency;
  2. “Offshore banking unit” means a banking branch Unit located in an International Financial Services Centre.
  3. “Over-the-counter derivatives” shall mean a derivative contract that is not traded on an exchange but instead is privately negotiated between a purchaser and a seller;