Notification No. 126/2025 [F. No. 370142/26/2025-TPL)] / G.S.R. 503(E)

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MINISTRY OF FINANCE (Department o f Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 2 8th Ju ly , 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), cl ause (b), -

(i) in the opening portion, after the words “offshore derivative instruments” , the words “or over - the - counter derivatives” shall be inserted ;

[ I I — 3(i ) ] : 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 F oreign P ortfolio I nvestor” shall be in serted. ( c ) in the Explanation , -

(i) in clause

(v) , fo r the words “a purchaser and a seller ; and”, the word s “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 Investo rs) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). ’ . [ F. No. 370142/2 6 /202 5 - TPL] SAMUEL PITTA , D y . Sec y . Note: - T he 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 R oad, Mayapuri, New Delhi - 110064 and Published by the Controller of Publications, Delhi - 110054.