**Policy Summary:**
This notification, No. 1262025, issued by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, on July 28, 2025, introduces the Income-tax Twentieth Amendment Rules, 2025. These rules, designated as G.S.R. 503(E), amend the Income-tax Rules, 1962, in exercise of powers conferred by section 295 read with clause (4E) of section 10 of the Income-tax Act, 1961 (43 of 1961).
The amendments, effective from the date of publication in the Official Gazette, primarily concern rule 21AK of the Income-tax Rules, 1962. Key changes include:
* Inclusion of "or over-the-counter derivatives" after "offshore derivative instruments" in sub-rule (1)(b)(i).
* Inclusion of "or any Foreign Portfolio Investor being a unit of an International Financial Services Centre" after "by the International Financial Services Centres Authority" in sub-rule (2)(a)(ii).
* Inclusion of "or the Foreign Portfolio Investor" after "offshore banking unit" in sub-rule (2)(b).
* Amendment to clause (v) of the Explanation by substituting the words "a purchaser and a seller; and" with "a purchaser and a seller;".
* Insertion of "and" at the end of clause (vi) of the Explanation.
* Insertion of a new clause (vii) in the Explanation, defining "Foreign Portfolio Investor" as 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).
For further information, contact Samuel Pitta, Dy. Secy., F. No. 370142262025-TPL.
The original Income-tax Rules, 1962, were published under S.O. 969(E), dated March 26, 1962, and last amended under G.S.R. 322(E), dated May 19, 2025.
Key Entities Referenced
Income-tax Act, 1961: A key piece of legislation governing income tax in India, cited as the basis for the notification.
Central Board of Direct Taxes: The government body responsible for making rules and amendments related to income tax in India.
Income-tax Rules, 1962: The set of rules that operationalize the Income-tax Act, 1961, and which this notification amends.
Income-tax Twentieth Amendment Rules, 2025: The specific amendment to the Income-tax Rules, 1962, being introduced by this notification.
International Financial Services Centres Authority: The regulatory body for International Financial Services Centres in India.
Foreign Portfolio Investor: An entity defined under the Securities and Exchange Board of India regulations that invests in India.
Securities and Exchange Board of India: The regulatory body for the securities market in India.
Securities and Exchange Board of India Act, 1992: A key legislation related to securities market in India.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-28072025-265047
xxxGIDHxxx
CG-DLxx-ExG-I2D8E0x7x2x0 25-265047
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 460] नई दिल्ली, सोमिार, िलु ाई 28, 2025/श्रािण 6, 1947
No. 460] NEW DELHI, MONDAY, JULY 28, 2025/SHRAVANA 6, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 28 िुलाई, 2025
स.ं 126/2025
सा.का.जन. 503(अ).— केंरीय प्रत्यक्ष कर बोडड, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड
(4ङ) के साथ पठित धारा 295 द्वारा प्रित्त िजियों का प्रयोग करत े हुए, आय-कर जनयम, 1962 का और संिोधन करने के
जलए जनम्नजलजखत जनयम बनाता ह,ै अथाडत्:-
1. (1) इन जनयमों का संजक्षप्त नाम आय-कर (बीसिां संिोधन) जनयम, 2025 ह ै।
(2) य ेरािपत्र में प्रकािन की तारीख को प्रिृत होंगे ।
2. आय-कर जनयम, 1962 के जनयम 21कट म,ें––
(क) उपजनयम (1) के खंड (ख ) में,-
(i) आरंजभक भाग में, “ऑफिोर डेठरिेठटि इंस्ट्ूमेंट्स” िब्िों के पश्चात् “या ओिर-ि-काउंटर डेठरिेठटव्स” िब्ि
अंतःस्ट्थाजपत दकए िाएगं े;
5048 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(ii) उपखंड (i) में, “अंतराडष्ट्रीय जित्तीय सेिा केंर प्राजधकरण द्वारा” िब्िों के पश्चात,् “या कोई जििेिी पोटडफोजलयो
जिजनधानकताड िो दकसी अंतराष्ट्रड ीय जित्तीय सेिा केंर की इकाई ह”ै िब्ि अतं ःस्ट्थाजपत दकए िाएंगे;
(ख) उपजनयम (2) में, "अपतटीय बैंककंग इकाई" िब्िों के पश्चात्, "या जििेिी पोटडफोजलयो जिजनधानकताड" िब्ि
अंतःस्ट्थाजपत दकए िाएगं े ।
(ग) स्ट्पष्टीकरण म ें,-
(i) खंड (v) म,ें “एक क्रेता और एक जिक्रेता; और” िब्िों के स्ट्थान पर, “एक क्रेता और एक जिक्रेता;” िब्ि रख े
िाएंगे;
(ii) खंड (vi) म,ें “और” िब्ि अतं म ेंअंतःस्ट्थाजपत दकया िाएगा; और
(iii) खंड (vi) के पश्चात ्जनम्नजलजखत खंड अंतःस्ट्थाजपत दकया िाएगा, अथाडत्:-
'(vii) "जििेिी पोटडफोजलयो जिजनधानकताड" से भारतीय प्रजतभूजत और जिजनमय बोडड अजधजनयम,
1992 (1992 का 15) के अधीन बनाए गए भारतीय प्रजतभूजत और जिजनमय बोड ड (जििेिी पोटडफोजलयो
जिजनधानकताड) जिजनयम, 2019 के अधीन रजिस्ट्रीकृत व्यजि अजभप्रेत ह ै।'।
[फा. स.ं 370142/26/2025-टीपीएल]
सैमुअल जपट्टा, उप सजचि
ठटप्पण: आय-कर जनयम, 1962 भारत के रािपत्र, असाधारण, भाग II, खडं 3, उपखंड (i) में संखयांक का.आ. 969(अ),
तारीख 26 माचड, 1962 द्वारा प्रकाजित दकए गए थे और अंजतम बार संखयांक सा.का.जन. 322(अ), तारीख
19.05.2025 द्वारा संिोजधत दकए गए थ े ।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 28th July, 2025
No. 126/2025
G.S.R. 503(E).— In exercise of the powers conferred by section 295 read with clause (4E) of section 10 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. (1) These rules may be called the Income-tax (Twentieth Amendment) Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in rule 21AK, ––
(a) in sub-rule (1), clause (b),-
(i) in the opening portion, after the words “offshore derivative instruments”, the words “or over-the-counter
derivatives” shall be inserted;[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
(ii) 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).’.
[F. No. 370142/26/2025-TPL]
SAMUEL PITTA, Dy. Secy.
Note: -The Income-tax Rules, 1962 were published in the Gazette of India, Extraordinary, Part II, section 3,
sub-section (i) vide number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide number
G.S.R. 322 (E), dated the 19.05.2025.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.