**Executive Summary**
The Ministry of Finance, through the Central Board of Direct Taxes, issued the Income-tax (Tenth Amendment) Rules, 2026, on March 31, 2026. These rules amend Rule 10U of the Income-tax Rules, 1962, to clarify the scope of Chapter X-A (General Anti-Avoidance Rule). The amendment ensures that income from the transfer of investments made before April 1, 2017, is excluded from the application of these provisions.
**Key Points / Main Content**
* **Amendment Identification and Effectiveness**
* The rules are titled the "Income-tax (Tenth Amendment) Rules, 2026."
* They come into force immediately upon their publication in the Official Gazette (March 31, 2026).
* **Amendments to Rule 10U**
* **Revised Sub-rule (1)(d):** Any income that accrues, arises, or is received (including deemed income) from the transfer of investments made before April 1, 2017, is protected under these rules.
* **Revised Sub-rule (2):** Provisions of Chapter X-A (GAAR) apply to any arrangement, regardless of its start date, if a tax benefit is obtained on or after April 1, 2017.
* **Specific Exception:** Income resulting from the transfer of investments made prior to April 1, 2017, is explicitly exempt from the application of Chapter X-A.
* **Explanatory Memorandum**
* The document clarifies that the provisions of Chapter X-A shall not be invoked on or after the publication date for cases involving income from investments made before April 1, 2017.
**Impact Analysis**
**Taxpayers (Individuals and Entities)**
**Impact**
Taxpayers who hold investments made before April 1, 2017, are granted grandfathering protection. Their income arising from the transfer of these specific investments will not be subject to scrutiny or tax adjustments under the General Anti-Avoidance Rule (GAAR).
**Action Required**
Taxpayers must maintain and provide clear documentation proving that the date of their investments was prior to April 1, 2017, to ensure compliance and claim the exemption during tax assessments.
**Income Tax Authorities (Central Board of Direct Taxes)**
**Impact**
Tax authorities are legally restricted from invoking GAAR provisions (Chapter X-A) against income derived from the transfer of pre-April 2017 investments.
**Action Required**
Assessment officers must update their review protocols to ensure that no GAAR-based proceedings are initiated or continued for income arising from grandfathered investments as defined in the amended Rule 10U.
Key Entities Referenced
Income-tax (Tenth Amendment) Rules, 2026: The specific policy notification introduced to amend the existing income tax regulatory framework.
Income-tax Rules, 1962: The principal set of rules governing tax procedures, specifically amended at Rule 10U regarding the applicability of tax benefit provisions.
Central Board of Direct Taxes (CBDT): The primary regulatory body under the Ministry of Finance responsible for issuing and administering these tax rule amendments.
Income-tax Act, 1961: The parent legislation that grants the legal authority, specifically under sections 101 and 295, to frame and amend tax rules.
Chapter X-A: The specific section of the tax framework concerning arrangements and tax benefits whose applicability is limited by this amendment for investments made before April 1, 2017.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-31032026-271473
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 221] िई कदल्ली, मगं लिार, मार् ड31, 2026/र्त्रै 10, 1948 13, 1947 26/पौष 17, 1947
No. 221] NEW DELHI, TUESDAY, MARCH 31, 2026/CHAITRA 10, 1948 ss, 1947 /PAUSHA 17, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अधिसचू ना
नई दिल्ली, 31 माच,च 2026
आयकर
सा.का.धन. 240(अ).—केंरीय प्रत्यक्ष कर बोड ड आयकर अजधजियम, 1961 (1961 का 43) की धारा 101 के साथ
पठित धारा 295 द्वारा प्रदत्त िजियों का प्रयोग करत ेहुए आयकर जियमािली, 1962 म ेंआगे सिं ोधि करिे के जलए एतद्द्वारा
जिम्नजलजखत जियम बिाता ह,ै अथाडत: ___
1. (1) इि जियमों को आयकर (दसिां संिोधि) जियमािली, 2026 कहा िा सकता ह।ै
(2) य ेआजधकाठरक रािपत्र म ेंअपि ेप्रकािि की तारीख को लागू होंगे।
2. आयकर जियमािली, 1962 के जियम 10प म,ें -
क) उप-जियम (1)(घ) के स्ट्थाि पर जिम्नजलजखत प्रजतस्ट्थाजपत ककया िाएगा, अथाडत: -
“(घ) ककसी भी व्यजि को ऐस ेजििेिों के हस्ट्तांतरण स ेहोिे िाली या उत्पन्न होि ेिाली, या हुई या उत्पन्न हुई मािी िाि े
िाली, या प्राप्त हुई या प्राप्त हुई मािी िाि े िाली कोई भी आय, िो उस व्यजि द्वारा 1 अप्रलै , 2017 स ेपहल े ककए गए थे।”;
(ख) उपजियम (2) के स्ट्थाि पर जिम्नजलजखत प्रजतस्ट्थाजपत ककया िाएगा, अथाडत:् -
2346 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
“(2) अध्याय X-क के प्रािधाि ककसी भी व्यिस्ट्था पर लागू होंग,े र्ाह े िह ककसी भी तारीख को की गई हो, बिते उस
व्यिस्ट्था स े 1 अप्रलै , 2017 को या उसके बाद कोई कर लाभ प्राप्त हुआ हो; जसिाय उस आय के, िो ककसी व्यजि को ऐस े
जििेिों के हस्ट्तांतरण स े प्राप्त होती ह ैया प्राप्त हुई मािी िाती ह,ै िो उस व्यजि द्वारा 1 अप्रलै , 2017 स े पहले ककए गए थे।
[अजधसूर्िा स.ं 54/2026/फा. सं. 370142/15/2026-टीपीएल]
रोजहत ससंह, अिर सजर्ि, टीपीएल-I, सीबीडीटी
व्याख्यात्मक ज्ञापि: इस संिोधि का यह प्रभाि होगा कक अध्याय X-क के प्रािधाि आजधकाठरक रािपत्र में अपिे प्रकािि
की तारीख को या उसके बाद ऐसे ककसी मामले म ें लाग ू िहीं होंग,े िहााँ ककसी व्यजि को ऐसी जििेिों के हस्ट्तांतरण स े आय
प्राप्त होती ह,ै या प्राप्त हुई मािी िाती ह,ै या प्राप्त होिे िाली मािी िाती ह,ै िो उस व्यजि द्वारा 1 अप्रलै , 2017 स े पहल े
ककए गए थे।
िोट: आयकर जियमािली, 1962 भारत के रािपत्र (असाधारण), भाग II, अिुभाग 3, उप-अिुभाग (ii) म ें संख्या
का.आ. 969 (अ), कदिांक 26 मार्ड, 1962 के तहत प्रकाजित की गई थी, और इिम ें अंजतम संिोधि अजधसूर्िा सख्ं या
सा.का.जि. 233 (अ). , कदिांक 30 मार्,ड 2026 के तहत ककया गया था।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 31st March, 2026
INCOME-TAX
G.S.R. 240(E).— In exercise of the powers conferred by section 295 read with section 101 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 (Tenth Amendment) Rules, 2026.
(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 10U, —
(a) in sub-rule (1), for clause (d), the following clause shall be substituted, namely: —
“(d) any income accruing or arising to, or deemed to accrue or arise to, or received or deemed
to be received by, any person from transfer of such investments which were made before the 1st
day of April, 2017 by such person.”;
(b) for sub-rule (2), the following sub-rule shall be substituted, namely: —
“(2) The provisions of Chapter X-A shall apply to any arrangement, irrespective of the date
on which it has been entered into, in respect of the tax benefit obtained from the arrangement on
or after the 1st day of April, 2017, except for that income which accrues or arises to, or deemed to
accrue or arise to, or is received or deemed to be received, by any person from transfer of such
investments which were made before the 1st day of April, 2017 by such person.”.
[Notification No. 54/2026/F. No. 370142/15/2026-TPL]
ROHIT SINGH, Under Sey., TPL-I, CBDT
Explanatory Memorandum: The amendment will have the effect that the provisions of Chapter X-A shall not be
invoked on or after the date of publication of these rules in the Official Gazette in a case where income accrues or arises
to, or deemed to accrue or arise to, or is received or deemed to be received, by any person from transfer of such
investments which were made before the 1st day of April, 2017 by such person.
Note: The Income-tax Rules, 1962 was published in the Gazette of India, Extraordinary, Part II, section 3,
sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification number
G.S.R. 233(E), dated the 30th March, 2026.
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