Central Board of Direct Taxes (CBDT) issued notification no. 126/2025 dated 28.07.2025 to further amend the Income tax Rules, 1962 by virtue of power u/s 295 read with section 10(4E). These rules may be called as the Income-tax (Twentieth Amendment) Rules, 2025 which shall come into force on the date of their publication in the Official Gazette.
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In rule 21AK –
(a) in sub-rule (1), clause (b),-
- in the opening portion, after the words “offshore derivative instruments”, the words “or over-the-counter derivatives” shall be inserted;
- in sub-clause (i), after the words “by the International Financial Services Centres Authority’’, the words “or any Foreign Portfolio Investor being a unit of an International Financial Services Centre” shall be inserted;
(b) in sub-rule (2), after the words “offshore banking unit”, the words “or the Foreign Portfolio Investor” shall be inserted.
(c) in the Explanation, –
- (i) in clause (v), for the words “a purchaser and a seller; and”, the words “a purchaser and a seller;” shall be substituted;
- (ii) in clause (vi), the word “and” shall be inserted at the end; and
- (iii) after clause (vi,) the following clause shall be inserted, namely:-
- ‘(vii), “Foreign Portfolio Investor” means a person registered under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).’.
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