Notification No. 42/2022 — Income tax 10th amendment rules…

What it does

The Income-tax (10th Amendment) Rules, 2022, made under clause (xii) of sub-section (5) of section 11 read with section 295, insert a new clause (vb) in rule 17C of the Income-tax Rules, 1962 after clause (va). The new clause makes an eligible form of investment the investment made by a person authorised under section 4 of the Payment and Settlement Systems Act, 2007 in the equity share capital, bonds or debentures of Open Network for Digital Commerce Ltd, a company incorporated under sub-section (2) of section 7 read with sub-section (1) of section 8 of the Companies Act, 2013, for participating in network based open protocol models enabling digital commerce and interoperable digital payments in India.

Who it reaches

Trusts and institutions holding funds under section 11(5) that are authorised payment system operators
Open Network for Digital Commerce Ltd as the investee company
Assessing officers examining whether a trust's investment is in a permitted mode
Auditors of charitable trusts reviewing the modes of investment

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.4	s.4
s.7	s.7
s.8	s.7
s.11	s.332, s.333, s.334, s.335, s.337, s.338, s.339, s.340, s.341, s.342, s.344, s.345, s.350, s.355
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION
New Delhi, the 22nd April, 2022
INCOME-TAX
G.S.R. 309(E).—In exercise of the powers conferred by clause (xii) of sub-section (5) of section 11 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.—(1) These rules may be called the Income-tax (10th Amendment) Rules, 2022.
(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 17C, after clause (va), the following clause shall be inserted, namely:-
"(vb) investment made by a person, authorised under section 4 of the Payment and Settlement Systems Act, 2007 (51 of 2007), in the equity share capital or bonds or debentures of Open Network for Digital Commerce Ltd, being a company incorporated under sub-section (2) of section 7 read with sub-section (1) of section 8 of the Companies Act, 2013 (18 of 2013), for participating in network based open protocol models which enable digital commerce and interoperable digital payments in India;".
[Notification No. 42/2022/ F. No. 370142/10/2022-TPL]
NEHA SAHAY, Under Secy.
Note: The principal rules were 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 last amended vide notification number G.S.R.307 (E) dated 21st April, 2022.
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.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 17C	no counterpart recorded

From when

The date of publication in the Official Gazette (22 April 2022).

What to watch

The rules come into force on the date of their publication in the Official Gazette.
The permission is narrow: the investor must be a person authorised under section 4 of the Payment and Settlement Systems Act, 2007, and the investee must be Open Network for Digital Commerce Ltd.
The purpose is confined to participating in network based open protocol models for digital commerce and interoperable digital payments in India.
An investment outside these limits remains a breach of section 11(5) with the consequences that follow.

Where you meet it

In the audit report and return of a trust or institution disclosing its modes of investment under section 11(5), and in the assessing officer's examination of those investments.

What it names

Rules it names. Rule 17C of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 87/2026 [F.No. 300196/75/2024-ITA-I] / SO 3920(E) — Ministry of Finance 16 July 2026
Notification No. 86/2026 [F. No. 300196/75/2024-ITA-I] / SO 3919(E) — [भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 16 July 2026
Notification No. 36/2026 [F. No. 300195/37/2025-ITA-I] / SO 1624(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 27 March 2026
Notification No. 13/2024 [F.No. C-14011/41/2018-V&L] / SO 312(E) — Ministry of Finance 19 January 2024
Notification No. 12/2024 [F.No. C-14011/46/2018-V&L] / SO 311(E) — Ministry of Finance 19 January 2024
Notification No. 3/2022 [F. No. 300196/11/2021-ITA-I] / SO 145(E) — Ministry of Finance 11 January 2022

← Notification No. 45/2022 [F. No. 370142/01/2020–TPL (Part I)] / GSR 313(E) · Notification No. 43/2022 [F. No. 285/44/2021-IT(Inv.V)/CBDT] / SO 1914(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.

Notification No. 42/2022 [F. No. 370142/10/2022-TPL] / GSR 309(E)

What this is