Income-tax (7th Amendment) Rules, 2019

Sep 17, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) on September 16, 2019, has published the Income-tax (7th Amendment) Rules, 2019 to further amend the Income-tax Rules, 1962.

The amendment in the Income-tax Rules, 1962 is as under:

Under Rule 2F(5) which specifies the Guidelines for setting up an Infrastructure Debt Fund for the purpose of exemption under section 10(47) ,the proviso has been omitted:

Clause (5): In case of an investor in the aforesaid bond being a non-resident, the original or initial maturity of bond, at time of first investment by such non-resident investor, shall not be less than a period of five years:

Proviso: Provided that the investment made by a non-resident investor in such bonds shall be subject to a lock in period of not less than three years, but the non-resident investor may transfer the bond to another non-resident investor within such lock in period.

However, Section 10 specifies the income not included in total income and Clause 47 of section 10 specifies any income of an infrastructure debt fund, set up in accordance with the guidelines as may be prescribed, which is notified by the Central Government in the Official Gazette for the purposes of this clause.

They shall come into force from the date of their publication in the Official Gazette that is September 16, 2019.

[Notification No. G.S.R. 661(E)]


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