Section 238 — Definitions
For the purposes of this rule and rules 239 and 240,—
(1) "financial account" means an account (other than an excluded account) maintained by a financial institution, and includes—(i) a depository account;(ii) a custodial account;(iii) in the case of an investment entity, any equity or debt interest in the financial institution. Explanation.—For the purposes of this sub-clause "financial account" shall not include any equity interest or debt interest in an entity that is aninvestment entity solely because it,—(a) renders investment advice to, and acts on behalf of; or(b) manages portfolios for, and acts on behalf of, a customer for the purpose of investing, managing, or administering financial assets deposited in the name of the customer with a financialinstitution that is not a non-participating financial institution other than such entity;(iv) in the case of a financial institution not described in sub-clause (iii), any equity or debt interest in the financial institution, if the class ofinterests was established with a purpose of avoiding reporting in accordance with rule 239 and, in case of a U.S. reportable account, if thevalue of the debt or equity interest is determined, directly or indirectly, primarily by reference to assets that give rise to U.S. sourcewithholdable payments; and(v) any cash value insurance contract and any annuity contract issued or maintained by a financial institution, other than a non-investment-linked,non-transferable immediate life annuity that is issued to an individual and monetises a pension or disability benefit provided under an accountthat is an excluded account. Explanation.—For the purposes of this clause,—(a) "depository account" includes any commercial, checking, savings, time, or thrift account, or an account that is evidenced by a certificate ofdeposit, thrift certificate, investment certificate, certificate of indebtedness, or other similar instrument maintained by a financial institution inthe ordinary course of a banking or similar business and also an amount held by an insurance company pursuant to a guaranteed investmentcontract or similar agreement to pay or credit interest thereon but for an account other than a U.S. reportable account,—(A) the provisions of this clause shall apply with the effect that the phrase "financial Institution in the ordinary course of a banking orsimilar business" shall be substituted by the phrase "depository institution";(B) a depository account shall also include, —(i) an account or notional account that represents all specified electronic money products held for the benefit of a customer; and(ii) an account that holds one or more central bank digital currencies for the benefit of a customer. Explanation.— For the purposes of clause (a) of the Explanation to rule 238(1), "central bank digital currencies" shall have the same meaningas assigned in rule 241;(b) "custodial account" means an account (other than an insurance contract or annuity contract) for the benefit of another person that holds one ormore financial assets;(c) "equity interest" in a financial institution, being—(i) a partnership firm, means either a capital or profits interest in the partnership firm;(ii) a trust, means any interest held by any person treated as a settlor or beneficiary of all or a portion of the trust, or any other naturalperson exercising ultimate effective control over the trust; Explanation.—A person will be treated as a beneficiary of a trust if he has the right to receive directly or indirectly a mandatory distribution ormay receive, directly or indirectly, a discretionary distribution from the trust.(d) "insurance contract" means a contract (other than an annuity contract) under which the issuer agrees to pay an amount upon the occurrence ofa specified contingency involving mortality, morbidity, accident, liability, or property risk;(e) "annuity contract" means a contract under which the issuer agrees to make payments for a period of time determined in whole or in part byreference to the life expectancy of one or more individuals;(f) "cash value insurance contract" means an insurance contract (other than an indemnity reinsurance contract between two insurance companies)that has a cash value and in case of a U.S. reportable account such value is greater than an amount equivalent to fifty thousand U.S. dollars. Explanation.—For the purposes of this clause, a single premium life insurance contract which does not permit an amount to be paid onsurrender or termination of the contract and which does not allow amounts to be borrowed under or with regard to the contract, shall notconstitute a cash value insurance contract;(g) "cash value" means the greater of—(i) the amount that the policyholder is entitled to receive upon surrender or termination of the contract (determined without reduction forany surrender charge or policy loan); and(ii) the amount the policyholder can borrow under or with regard to the contract, but does not include an amount payable under an insurance contract,—(A) solely by reason of the death of an individual insured under a life insurance contract including a refund of a previously paid premiumprovided such refund is a limited risk refund; or(B) as a personal injury or sickness benefit or other benefit providing indemnification of an economic loss incurred upon the occurrenceof the event insured against; or(C) as a refund of a previously paid premium (less cost of insurance charges whether or not actually imposed) under an insurance contract(other than a life insurance contract or an annuity contract) due to cancellation or termination of the contract, decrease in riskexposure during the effective period of the contract, or arising from the correction of a posting or similar error with regard to thepremium for the contract; or(D) as a policyholder dividend (other than a termination dividend) provided that the dividend relates to an insurance contract under whichthe only benefits payable are described in sub-clause (B); or(E) as a return of an advance premium or premium deposit for an insurance contract for which the premium is payable at least annually ifthe amount of the advance premium or premium deposit does not exceed the next annual premium which will be payable under thecontract;(ga) for the purposes of clause (g) of Explanation to sub-rule (1), the provisions contained in sub-clause (A) and sub-clause (E) shall not apply incase of a U.S. reportable account;(h) "excluded account" means,—
(i) a retirement account or pension account that satisfies the following requirements: —(A) the account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement orpension plan for the provision of retirement or pension benefits (including disability or death benefits);(B) the account is tax-favoured where contributions to the account that would otherwise be subject to tax are deductible orexcluded from the gross total income of the account holder or taxed at a reduced rate, or taxation of investment income fromthe account is deferred or taxed at a reduced rate;(C) information reporting is required to the income-tax authorities with respect to the account;(D) withdrawals are conditioned on reaching a specified retirement age, disability, or death, or penalties apply to withdrawalsmade before such specified events; and(E) either annual contributions are limited to an amount equivalent to fifty thousand U.S. dollars or less, or there is maximumlifetime contribution limit to the account of an amount equivalent to one million U.S. dollars or less, in each case applyingthe rules specified in rule 240 for account aggregation and currency translation. Explanation.—A financial account that otherwise satisfies the requirements of item (E) will not fail to satisfy suchrequirements solely because such financial account may receive assets or funds transferred from one or more financialaccounts that meet the requirements of sub-clause (i) or (ii) or from one or more retirement or pension funds that meets withthe requirements of clause (E), (F) or (G) of Explanation to clause (5);(ii) an account that satisfies the following requirements:—(A) the account is subject to regulation as a savings vehicle for purposes other than for retirement, or the account (other thanU.S. reportable account) is subject to regulation as an investment vehicle for purposes other than for retirement and isregularly traded on an established securities market;(B) the account is tax-favoured where contributions to the account that will otherwise be subject to tax are deductible orexcluded from the total income of the account holder or taxed at a reduced rate, or taxation of investment income from theaccount is deferred or taxed at a reduced rate;(C) withdrawals are conditioned on meeting specific criteria related to the purpose of the investment or savings account (forexample, the provision of educational or medical benefits), or penalties apply to withdrawals made before such criteria aremet; and(D) annual contributions are limited to an amount equivalent to fifty thousand U.S. dollars or less, applying the rules specified inrule 240 for account aggregation and currency translation. Explanation.—A financial account that otherwise satisfies the requirements of item (D) will not fail to satisfy suchrequirements solely because such financial account may receive assets or funds transferred from one or more financialaccounts that meet the requirements of sub-clause (i) or (ii) or from one or more retirement or pension funds that meets withthe requirements of clause (E), (F) or (G) of Explanation to clause (5) of this rule;(iii) an account established under the Senior Citizens Savings Scheme Rules, 2004 made under the Government Savings Banks Act, 1873(5 of 1873);(iv) a life insurance contract with a coverage period that will end before the insured individual attains age of ninety years, provided thatthe contract satisfies the following requirements: —(A) periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is inexistence or until the insured attains age of ninety years, whichever is shorter;(B) the contract has no contract value that any person can access (by withdrawal, loan, or otherwise) without terminating thecontract;(C) the amount (other than a death benefit) payable upon cancellation or termination of the contract cannot exceed the aggregatepremiums paid for the contract, less the sum of mortality, morbidity, and expense charges (whether or not actually imposed)for the period or periods of the contract's existence and any amounts paid prior to the cancellation or termination of thecontract; and(D) the contract is not held by a transferee for value;(v) an account that is held solely by an estate if the documentation for such account includes a copy of the deceased's will or deathcertificate;(vi) an account established in connection with any of the following:—(A) a court order or judgment;(B) a sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements: —(a) the account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure anobligation directly related to the transaction, or a similar payment, or is funded with a financial asset that isdeposited in the account in connection with the sale, exchange, or lease of the property;(b) the account is established and used solely to secure the obligation of the purchaser to pay the purchase price for theproperty, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to theleased property as agreed under the lease;(c) the assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefitof the purchaser, seller, lessor, or lessee (including to satisfy such person's obligation) when the property is sold,exchanged, or surrendered, or the lease terminates;(d) the account is not a margin or similar account established in connection with a sale or exchange of a financial asset;and(e) the account is not associated with a depository account referred to in sub-clause (vii);(C) an obligation of a financial institution servicing a loan secured by real property to set aside a portion of a payment solely tofacilitate the payment of taxes or insurance related to the real property at a later time;(D) an obligation of a financial institution solely to facilitate the payment of taxes at a later time;(E) a foundation or capital increase of a company provided that the account satisfies the following requirements: —(i) the account is used exclusively to deposit capital that is to be used for the purpose of the foundation or capitalincrease of a company, as prescribed by law;(ii) any amounts held in the account are blocked until the Reporting Financial Institution obtains an independentconfirmation regarding the foundation or capital increase;
(iii) the account is closed or transformed into an account in the name of the company after the foundation or capitalincrease;(iv) any repayments resulting from a failed foundation or capital increase, net of service provider and similar fees, aremade solely to the persons who contributed the amounts;(v) the account has not been established more than 12 months ago; and(vi) the account is not a U.S. reportable account;(vii) in the case of an account other than a U.S. reportable account, a depository account that satisfies the following requirements:—(A) the account exists solely because a customer makes a payment in excess of a balance due with respect to a credit card orother revolving credit facility and the overpayment is not immediately returned to the customer; and(B) beginning on or before the 31st December, 2015, the financial institution implements its policies and procedures either toprevent a customer from making an overpayment in excess of an amount equivalent to fifty thousand U.S. dollars, or toensure that any customer overpayment in excess of an amount equivalent to fifty thousand U.S. dollars is refunded to thecustomer within sixty days, in each case applying the rules specified in rule 240 for account aggregation and currencytranslation and for this purpose, a customer overpayment does not refer to credit balances to the extent of disputed chargesbut includes credit balances resulting from merchandise returns;(viii) a depository account, other than U.S. reportable account, which represents all specified electronic money products held for the benefitof a customer, if the rolling average 90 day end-of-day aggregate account balance or value during any period of 90 consecutive daysdid not exceed USD 10,000 at any day during the calendar year or other appropriate reporting period;(2) "financial asset" includes a security (for example, a share of stock in a corporation; partnership or beneficial ownership interest in a widely held orpublicly traded partnership or trust; note, bond, debenture, or other evidence of indebtedness), partnership interest, commodity, swap (for example,interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors, commodity swaps, equity swaps, equity index swaps, andsimilar agreements), insurance contract or annuity contract, or any interest (including a futures or forward contract or option) in a security, partnershipinterest, commodity, swap, insurance contract, or annuity contract but "financial asset" shall not include a non-debt and direct interest in an immovableproperty and for an account other than a U.S. reportable account, "financial asset" shall also include any interest (including a futures or forwardcontract or option) in a relevant crypto-asset;(3) "financial institution" means a custodial institution, a depository institution, an investment entity, or a specified insurance company.
Explanation.—For the purposes of this clause,—(a) "custodial institution" means any entity that holds, as a substantial portion of its business, financial assets for the account of others and whereits income attributable to the holding of financial assets and related financial services equals or exceeds twenty per cent of its gross incomeduring the three financial years preceding the year in which determination is made or the period during which the entity has been in existence,whichever is less;(b) "depository institution" means any entity that accepts deposits in the ordinary course of a banking or similar business but for an account otherthan a U.S. reportable account, "depository institution" shall also include an entity that holds specified electronic money products or centralbank digital currencies for the benefit of customers;(c) "investment entity" means any entity,—(A) that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer: —(i) trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.); foreign exchange; exchange,interest rate and index instruments; transferable securities; or commodity futures trading; or(ii) individual and collective portfolio management; or(iii) otherwise investing, administering, or managing financial assets or money on behalf of other persons but for an accountother than U.S. reportable account, the provisions of this item,—(a) shall apply with the effect that the phrase "financial assets" shall be substituted by the phrase "financial assets orrelevant crypto-assets";(b) shall not include the provision of services effectuating exchange transactions for or on behalf of customers. Explanation. —For the purposes of item (iii), the term "exchange transaction'' shall have the same meaning as assigned in rule 241;(B) the gross income of which is primarily attributable to investing, reinvesting, or trading in financial assets, if the entity is managed byanother entity that is a depository institution, a custodial institution, a specified insurance company, or an investment entitymentioned in sub-clause (A) of this clause. Explanation 1.— An entity is treated as primarily conducting as a business one or more of the activities described in sub-clause (A) ofthis clause, or an entity's gross income is primarily attributable to investing, reinvesting, or trading in financial assets for purposes ofsub-clause (B) of this clause, if the entity's gross income attributable to the relevant activities equals or exceeds fifty per cent of thegross income of the entity during the shorter of the three-year period ending on 31st March of the year preceding the year in whichthe determination is made or the period during which the entity has been in existence. Explanation 2.—The term "investment entity" shall not include an entity that is an active non-financial entity merely because it meetsany of the criteria provided in sub-clause (iv), (v), (vi) or (vii) of clause (A) of Explanation to clause (6) of this rule but for an accountother than a U.S. reportable account, the provisions of sub-clause (B) and Explanation 1 shall apply with the effect that the phrase"financial assets" shall be substituted by the phrase "financial assets or relevant crypto-assets";(d) "specified insurance company" means any entity that is an insurance company (or the holding company of an insurance company) that issues,or is obligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract;(4) "non-participating financial institution" means a financial institution defined in clause (r) of Article 1 of the agreement between the Government of theRepublic of India and the Government of the United States of America to improve international tax compliance and to implement Foreign Account TaxCompliance Act of the United States of America (hereinafter referred to as the FATCA agreement), but does not include, —(a) an Indian financial institution; or(b) other jurisdiction, being a jurisdiction that has in effect an agreement with the United States of America to facilitate the implementation ofForeign Account Tax Compliance Act (hereinafter referred to as other partner jurisdiction), financial institution, other than a financial institution treated as a non-participating financial institution pursuant to sub-paragraph (b) of paragraph 2 of Article 5 of theFATCA agreement or the corresponding provision in an agreement between the United States of America and other partner jurisdiction;(5) "non-reporting financial institution" means any financial institution that is,—(a) a Governmental entity, International Organisation or Central Bank, other than—(i) with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engagedin by a specified insurance company, custodial institution, or depository institution; or
(ii) with respect to the activity of maintaining central bank digital currencies for account holders which are not financial institutions,governmental entities, international organisations or central banks but the provisions of this item shall apply in respect of an accountother than a U.S. reportable account;(b) a Treaty Qualified Retirement Fund; a Broad Participation Retirement Fund; a Narrow Participation Retirement Fund; or a Pension Fund of aGovernmental entity, International Organization or Central Bank;(c) a non-public fund of the armed forces, Employees' State Insurance Fund, a gratuity fund or a provident fund;(d) an entity that is an Indian financial institution only because it is an investment entity, provided that each direct holder of an equity interest inthe entity is a financial institution referred to in sub-clauses (a) to (c), and each direct holder of a debt interest in such entity is either adepository institution (with respect to a loan made to such entity) or a financial institution referred to in sub-clauses (a) to (c);(e) a qualified credit card issuer;(f) an investment entity established in India that is a financial institution only because it,—(I) renders investment advice to, and acts on behalf of; or(II) manages portfolios for, and acts on behalf of; or(III) executes trades on behalf of, a customer for the purposes of investing, managing, or administering funds or securities deposited in the name of the customer with afinancial institution other than a non-participating financial institution;(g) an exempt collective investment vehicle;(h) a trust established under any law for the time being in force to the extent that the trustee of the trust is a reporting financial institution andreports all information required to be reported under rule 239 with respect to all reportable accounts of the trust;(i) a financial institution with a local client base, in case of any U.S. reportable account;(j) a local bank, in case of any U.S. reportable account;(k) a financial institution with only low value accounts, in case of any U.S. reportable account;(l) sponsored investment entity and controlled foreign corporation, in case of any U.S. reportable account; or(m) sponsored closely held investment vehicle, in case of any U.S. reportable account;(n) a qualified non-profit entity in respect of an account other than a U.S. reportable account. Explanation. —For the purpose of this clause,—(A) "Governmental entity" means the Government of a country or territory, any political sub-division of a country or territory (including a State,province, county, or municipality), or any wholly owned agency or instrumentality or controlled entity of a country or territory or of any oneor more of the foregoing (where each is also a "Governmental entity") and includes the integral parts, controlled entities, and political sub-divisions of such country or territory. Explanation.—For the purpose of clause (A), —(i) Subject to provisions of clauses (iii) and (iv), an "integral part" of a country or territory means any person, organisation, agency,bureau, fund, instrumentality, or other body, by whatever name called, that constitutes a governing authority of a country or territoryand the net earnings of the governing authority must be credited to its own account or to other accounts of the country or territory,with no portion inuring to the benefit of any private person but integral part does not include any individual, who is a sovereign,official, or administrator acting in a private or personal capacity;(ii) Subject to the provisions of clauses (iii) and (iv), a controlled entity means an entity that is separate in form from the country orterritory or that otherwise constitutes a separate juridical entity; so, however, that,—(a) the entity is wholly owned and controlled by one or more Governmental entities directly or through one or more controlledentities;(b) the entity's net earnings are credited to its own account or to the accounts of one or more Governmental entities, with noportion of its income inuring to the benefit of any private person; and(c) the entity's assets vest in one or more Governmental entities upon dissolution;(iii) the income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a Governmentalprogramme, and the programme activities are performed for the general public with respect to the common welfare or relate to theadministration of a Department of Government;(iv) income is considered to inure to the benefit of private persons if the income is derived from Governmental entity engaged in acommercial business, such as a commercial banking business, which provides financial services to private persons;(B) "International Organisation" means any international organization or wholly owned agency or instrumentality thereof including any inter-Governmental organisation,—(a) that is comprised primarily of Governments;(b) that has in effect a headquarters or substantially similar agreement with India; and(c) the income of which does not inure to the benefit of private persons;(C) "Central Bank" means a bank that is by law or Government sanction the principal authority, other than the Government of the country orterritory itself, issuing instruments intended to circulate as currency including an instrumentality that is separate from the Government of thecountry or territory, whether or not owned in whole or in part by that country or territory;(D) "Treaty Qualified Retirement Fund" means a fund established in India, provided that the fund is entitled to benefits under an agreementbetween India and the United States of America on income that it derives from sources within the United States of America (or would beentitled to such benefits if it derived any such income) as a resident of India that satisfies any applicable limitation on benefits requirement,and is operated principally to administer or provide pension or retirement benefits;(E) "Broad Participation Retirement Fund" means a fund established to provide retirement, disability, or death benefits, or any combinationthereof, to beneficiaries who are current or former employees (or persons nominated by such employees) of one or more employers inconsideration for services rendered but the fund,—(i) does not have any beneficiary with a right to more than five per cent of the fund's assets;(ii) is subject to Government regulation and provides information reporting to the income-tax authorities; and(iii) satisfies at least one of the following requirements:—(a) the fund is generally exempt from tax on investment income, or taxation of such income is deferred or taxed at a reducedrate, due to its status as a retirement or pension plan;
(b) the fund receives at least fifty per cent of its total contributions other than transfer of assets from other plans referred to inclauses (D) to (G) or from retirement and pension accounts referred to in sub-clause (i) of clause (h) of Explanation to clause(1) from the sponsoring employers;(c) distributions or withdrawals from the fund are allowed only in the event of retirement, disability or death except rolloverdistributions to other retirement funds referred to in clauses (E) to (G), or retirement and pension accounts referred to in sub-clause (i) of clause (h) of Explanation to clause (1), or penalties which apply to distributions or withdrawals made beforesuch events; or(d) contributions (other than permitted make-up contributions) by employees to the fund are limited by reference to earnedincome of the employee or may not exceed an amount equivalent to fifty thousand U.S. dollars annually, applying theprocedures set forth in rule 240 for account aggregation and currency translation;(F) "Narrow Participation Retirement Fund" means a fund established to provide retirement, disability, or death benefits to beneficiaries who arecurrent or former employees (or persons nominated by such employees) of one or more employers in consideration for services rendered; so,however, that,—(i) the fund has less than fifty participants;(ii) the fund is sponsored by one or more employers who are not investment entities or passive non-financial entities;(iii) the employee and employer contributions to the fund other than transfer of assets from retirement and pension accounts referred to insub-clause (i) of clause (h) of Explanation to clause (1) are limited by reference to earned income and compensation of the employee,respectively;(iv) participants who are not residents in India are not entitled to more than twenty per cent of the fund's assets; and(v) the fund is subject to Government regulation and provides information reporting to the income-tax authorities;(G) "Pension Fund of a Governmental entity, International Organisation or Central Bank" means a fund established by a Governmental entity, InternationalOrganisation or Central Bank to provide retirement, disability or death benefits to beneficiaries or participants who are current or former employees (orpersons nominated by such employees), or who are not current or former employees, if the benefits provided to such beneficiaries or participants are inconsideration of personal services rendered to the Governmental entity, International Organisation or Central Bank;(H) "non-public fund of the armed forces" means a fund established in India as a regimental fund or non-public fund by the armed forces of the Union ofIndia for the welfare of the current and former members of the armed forces and whose income is exempt from tax under Schedule VII(1) of the Act;(I) "Employees' State Insurance Fund" means the fund established as Employees' State Insurance Fund under the provisions of the Employees' StateInsurance Act, 1948 (34 of 1948), to provide medical expenses of low-income factory workers in India;(J) "gratuity fund" means a fund established under the Payment of Gratuity Act, 1972 (39 of 1972), to provide for the payment of a gratuity to certaintypes of employees of an Indian employer specified in the Payment of Gratuity Act, 1972;(K) "provident fund" means a fund established under the Provident Funds Act, 1925 (19 of 1925) or the Employees' Provident Funds and MiscellaneousProvisions Act, 1952 (19 of 1952) to provide current and former employees of Indian employers retirement benefits in consideration for servicesrendered but that fund,—(i) does not have any beneficiary with a right to more than five per cent of the fund's assets;(ii) is subject to Government regulation and provides annual information reporting about its beneficiaries to the income-tax authorities;(iii) is generally exempt from tax on investment income due to its status as a provident fund; and(iv) contributions (other than permitted make-up contributions) by employees to the fund are limited by reference to earned income of theemployee or may not exceed an amount equivalent to fifty thousand U.S. dollars annually, applying the procedures set forth in rule240 for account aggregation and currency translation;(L) "qualified credit card issuer" means a financial institution satisfying the following requirements: —(i) it is a financial institution only because it is an issuer of credit cards and accepts deposits only when a customer makes a payment inexcess of a balance due with respect to the card and the overpayment is not immediately returned to the customer; and(ii) beginning on or before the 1st July, 2014, the financial institution implements policies and procedures either to prevent a customerfrom making an overpayment in excess of an amount equivalent to fifty thousand U.S. dollars or to ensure that any customeroverpayment in excess of an amount equivalent to fifty thousand U.S. dollars is refunded to the customer within sixty days, in eachcase applying the rules set forth in rule 240 for account aggregation and currency translation. Explanation.—For the purpose of this sub-clause, a customer overpayment does not refer to credit balances to the extent of disputed chargesbut includes credit balances resulting from merchandise returns;(M) "exempt collective investment vehicle" means an investment entity that is regulated as a collective investment vehicle, provided that all of theinterests in the collective investment vehicle are held by or through persons other than,—(i) those referred to in sub-clauses (a) to (c) of clause (6); and(ii) a non-participating financial institution. Explanation.—An investment entity which is regulated as a collective investment vehicle does not fail to qualify under this clause as anexempt collective investment vehicle, only because it has issued physical shares in bearer form; so, however, that—(i) the collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after the 31st December, 2012;(ii) the collective investment vehicle retires all such shares upon surrender;(iii) the collective investment vehicle performs the due diligence procedures set forth in rule 240 and reports any information required tobe reported with respect to any such shares when such shares are presented for redemption or other payment; and(iv) the collective investment vehicle has in place policies and procedures to ensure that such shares are redeemed or immobilised as soonas possible, and in any event prior to the 1st January, 2017;(N) "financial institution with a local client base" means a financial institution satisfying the following requirements:—(i) it has been granted a licence and is regulated as a financial institution under any law for the time being in force;(ii) the financial institution does not have a fixed place of business outside India. Explanation.—For the purposes of this sub-clause, a fixed place of business does not include a location that is not advertised to thepublic and from which the financial institution performs only administrative support functions; and(iii) the financial institution does not solicit customers or account holders outside India. Explanation. —For the purpose of this sub-clause, a financial institution shall not be considered to have solicited customers oraccount holders outside India merely because the financial institution,—(a) operates a website, provided that the website does not specifically indicate that the financial institution provides financialaccounts or services to non-residents, and does not otherwise target or solicit customers or account holders who are residentof any country or territory outside India for tax purposes; or
(b) advertises in print media or on a radio or television station which is distributed or aired primarily within India but is alsoincidentally distributed or aired in other countries, provided that the advertisement does not specifically indicate that thefinancial institution provides financial accounts or services to non-residents, and does not otherwise target or solicitcustomers or account holders who are resident of any country or territory outside India for tax purposes;(iv) the financial institution is required under any law for the time being in force to identify resident account holders for purposes of eitherinformation reporting or withholding of tax with respect to financial accounts held by residents or for purposes of satisfying the duediligence requirements under the Prevention of Money-laundering Act, 2002 (15 of 2003);(v) at least ninety eight per cent of the financial accounts by value maintained by the financial institution are held by residents;(vi) beginning on or before the 30th June, 2014, the policies and procedures of the financial institution are consistent with those set forthin rule 240, to prevent the financial institution from providing a financial account to any non-participating financial institution and tomonitor whether the financial institution opens or maintains a financial account for any reportable person who is not a resident ofIndia (including a non-resident who was a resident of India when the financial account was opened but subsequently ceases to be aresident of India) or any passive non-financial entity with controlling persons who are reportable persons;(vii) such policies and procedures explicitly provide that if any financial account held by a reportable person who is not a resident of Indiaor by a passive non-financial entity with controlling persons who are reportable persons who are not resident of India is identified, thefinancial institution shall report such financial account as would be required if the financial institution was a reporting financialinstitution or close such financial account;(viii) with respect to a pre-existing account held by an individual who is not a resident of India or by an entity, the financial institution shallreview those pre-existing accounts in accordance with the procedures set forth in rule 240 applicable to pre-existing accounts toidentify any reportable account or financial account held by a non-participating financial institution, and shall report such financialaccount as would be required if the financial institution were a reporting financial institution or close such financial account;(ix) each related entity of the financial institution that is a financial institution must be incorporated or organised in India and, with theexception of any related entity that is a retirement fund referred to in clauses (D) to (G) of this Explanation, satisfies the requirementsset forth in this clause; and(x) the financial institution must not have policies or practices which discriminate against opening or maintaining financial accounts forindividuals who are specified U.S. persons and residents of India;(O) "local bank" means a financial institution satisfying the following requirements: —(i) the financial institution operates only as (and is licensed and regulated under any law for the time being in force) a bank, or a creditunion or similar cooperative credit organisation which is operated without profit;(ii) the business of the financial institution consists primarily of receiving deposits from and making loans to, with respect to a bank,unrelated retail customers and, with respect to a credit union or similar cooperative credit organisation, members, provided that nomember has a greater than five per cent interest in such credit union or cooperative credit organisation;(iii) the financial institution satisfies the requirements set forth in sub-clauses (ii) and (iii) of clause (N), provided that, in addition to thelimitations on the website referred to in sub-clause (iii) of clause (N), the website does not permit the opening of a financial account;(iv) the financial institution does not have more than an amount equivalent to one hundred seventy-five million U.S. dollars in assets onits balance sheet, and the financial institution and any related entity, taken together, does not have more than an amount equivalent tofive hundred million U.S. dollars in total assets on its consolidated or combined balance sheets; and(v) any related entity must be incorporated or organised in India, and any related entity that is a financial institution, with the exceptionof any related entity that is a retirement fund referred to in clauses (D) to (G) or a financial institution with only low-value accountsreferred to in clause (P), must satisfy the requirements set forth in this clause. Explanation.—Regional Rural Banks constituted under the Regional Rural Bank Act, 1976 (21 of 1976), Urban Cooperative Banks constituted underrespective State Cooperative Societies Acts or Multi State Cooperative Societies Act, State Cooperative Banks or District Central Cooperative Banksconstituted under respective State Cooperative Societies Act and Local Area Banks licensed under the Banking Regulations Act, 1949 (10 of 1949) andregulated and registered as public limited companies under the Companies Act, 1956 (1 of 1956) or Companies Act, 2013 (18 of 2013), that satisfy therequirement under sub-clause (iv) shall be treated as local bank for the purpose of this clause;(P) "financial institution with only low-value accounts" means a financial institution satisfying the following requirements:—(i) the financial institution is not an investment entity;(ii) no financial account maintained by the financial institution or any related entity has a balance or value in excess of an amountequivalent to fifty thousand U.S. dollars, applying the procedures prescribed in rule 240 for account aggregation and currencytranslation; and(iii) the financial institution does not have more than fifty million U.S. dollars in assets on its balance sheet, and the financial institutionand any related entities, taken together, do not have more than fifty million U.S. dollars in total assets on their consolidated orcombined balance sheets;(Q) "sponsored investment entity and controlled foreign corporation" means a financial institution described in the following sub-clauses:—(i) a financial institution is a sponsored investment entity if—(a) it is an investment entity established in India that is not a qualified intermediary (being an intermediary that is a party to awithholding agreement with the United States of America), withholding foreign partnership, or withholding foreign trust;and(b) an entity has agreed with the financial institution to act as a sponsoring entity for the financial institution;(ii) a financial institution is a sponsored controlled foreign corporation if—(a) the financial institution is a controlled foreign corporation established under any law for the time being in force in India thatis not a qualified intermediary (being an intermediary which is a party to a withholding agreement with the United States ofAmerica), withholding foreign partnership, or withholding foreign trust;(b) the financial institution is wholly owned, directly or indirectly, by a reporting U.S. financial institution referred to in Article1 of the FATCA agreement that agrees to act, or requires an affiliate of the financial institution to act, as a sponsoring entityfor the financial institution; and(c) the financial institution shares a common electronic account system with the sponsoring entity that enables the sponsoringentity to identify all account holders and payees of the financial institution and to access all account and customerinformation maintained by the financial institution including, but not limited to, customer identification information,customer documentation, account balance, and all payments made to the account holder or payee, and that complies with the following requirements: —
(I) the sponsoring entity is authorised to act on behalf of the financial institution (such as a fund manager, trustee, corporate director, ormanaging partner) to fulfil applicable registration requirements of the United States of America;(II) the sponsoring entity has registered as a sponsoring entity with the United States of America;(III) if the sponsoring entity identifies any U.S. reportable account with respect to the financial institution, the sponsoring entity registersthe financial institution pursuant to applicable registration requirements of the United States of America on or before the 31stDecember, 2015 or the date that is ninety days after such U.S. reportable account is first identified, whichever is later;(IV) the sponsoring entity agrees to perform, on behalf of the financial institution, all due diligence, withholding, reporting, and otherrequirements that the financial institution would have been required to perform if it were a reporting financial institution;(V) the sponsoring entity identifies the financial institution and includes the identifying number of the financial institution (obtained byfollowing applicable registration requirements of the United States of America) in all its reporting completed on the financialinstitution's behalf; and(VI) the sponsoring entity has not had its status as a sponsor revoked;(R) "sponsored, closely held investment vehicle" means a financial institution satisfying the following requirements:—(i) it is a financial institution only because it is an investment entity and is not a qualified intermediary (being an intermediary that is aparty to a withholding agreement with the United States of America), withholding foreign partnership, or withholding foreign trust;(ii) the sponsoring entity is a reporting U.S. financial institution referred to in Article 1 of the FATCA agreement, reporting financialinstitution, or participating foreign financial institution defined in Annex II of the FATCA agreement, is authorised to act on behalf ofthe financial institution (such as a professional manager, trustee, or managing partner), and agrees to perform, on behalf of thefinancial institution, all due diligence, withholding, reporting, and other requirements which the financial institution would have beenrequired to perform if it were a reporting financial institution;(iii) the financial institution does not act as an investment vehicle for unrelated parties;(iv) twenty or less than twenty individuals own all the debt interests and equity interests in the financial institution (other than debtinterests owned by participating foreign financial institution defined in Annex II of the FATCA agreement and non-reporting financialinstitutions and equity interests owned by an entity if that entity owns hundred per cent of the equity interests in the financialinstitution and is itself a sponsored financial institution described in this clause); and(v) the sponsoring entity complies with the following requirements:—(a) it has been registered as a sponsoring entity in terms of the Foreign Account Tax Compliance Act of the United States ofAmerica;(b) the sponsoring entity agrees to perform, on behalf of the financial institution, all due diligence, withholding, reporting, andother requirements that the financial institution would have been required to perform if it were a reporting financialinstitution and retains documentation collected with respect to the financial institution for a period of six years;(c) the sponsoring entity identifies the financial institution in all its reporting completed on the financial institution's behalf; and(d) the sponsoring entity has not had its status as a sponsor revoked;(S) "Qualified Non-Profit Entity" means an entity resident in India that has obtained confirmation by the Income-tax Department or othergovernmental authority of India that such entity meets all of the following conditions:—(i) it is established and operated in India exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educationalpurposes; or it is established and operated in India and it is a professional organisation, business league, chamber of commerce,labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotionof social welfare;(ii) it is exempt from income-tax in India;(iii) it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;(iv) the applicable laws of India or the entity's formation documents do not permit any income or assets of the entity to be distributed to,or applied for the benefit of, a private person or a non-charitable entity other than pursuant to the conduct of the entity's charitableactivities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value ofproperty which the entity has purchased; and(v) the applicable laws of India or the entity's formation documents require that, upon the entity's liquidation or dissolution, all of itsassets be distributed to a Governmental entity or other entity that meets the conditions set out in (i) to (v), or escheat to theGovernment of India or any political sub-division thereof;(6) "reportable account" means a financial account which has been identified, pursuant to the due diligence procedures provided in rule 240, as held by, —(a) a reportable person; or(b) an entity, not based in United States of America, with one or more controlling persons that is a specified U.S. person; or(c) a passive non-financial entity with one or more controlling persons that is a person described in sub-clause (b) of clause (8) of this rule. Explanation. —For the purpose of this clause,—(A) "active non-financial entity" means any non-financial entity which fulfils any of the following criteria:—(i) less than fifty per cent of the entity's gross income for the preceding financial year is passive income and less than fifty per cent of theassets held by the entity during the preceding financial year are assets that produce or are held for the production of passive income;or(ii) the stock of the entity is regularly traded on an established securities market or the non-financial entity is a related entity of an entity,the stock of which is regularly traded on an established securities market. Explanation.—For the purpose of this sub-clause, an established securities market means an exchange that is recognised andsupervised by a Governmental authority in which the securities market is located and that has a meaningful annual value of sharestraded on the exchange;(iii) the entity is a Governmental entity, an International Organization, a Central Bank, or an entity wholly owned by one or more of theseentities; or(iv) substantially all of the activities of the entity consist of holding (in whole or in part) the outstanding stock of, or providing financingand services to, one or more subsidiaries that engage in trades or businesses other than the business of a financial institution but anentity shall not qualify for this status if it functions as an investment fund, such as a private equity fund, venture capital fund,leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in thosecompanies as capital assets for investment purposes; or
(v) the entity is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent tooperate a business other than that of a financial institution, provided that the entity shall not qualify for this exception after the datethat is twenty four months after the date of the initial organisation of the entity; or(vi) the entity was not a financial institution in the past five years, and is in the process of liquidating its assets or is reorganising withintent to continue or recommence operations in a business other than that of a financial institution; or(vii) the entity primarily engages in financing and hedging transactions with, or for, related entities which are not financial institutions, anddoes not provide financing or hedging services to any entity which is not a related entity, provided that the group of any such relatedentities is primarily engaged in a business other than that of a financial institution; or(viii) the entity fulfils all of the following requirements: —(a) it is established and operated in India exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educationalpurposes; or it is established and operated in India and it is a professional organisation, business league, chamber ofcommerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operatedexclusively for the promotion of social welfare;(b) it is exempt from income-tax in India;(c) it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;(d) the applicable laws of the entity's country or territory of residence or the entity's formation documents do not permit anyincome or assets of the entity to be distributed to, or applied for the benefit of, a private person or non-charitable entity otherthan pursuant to the conduct of the entity's charitable activities, or as payment of reasonable compensation for servicesrendered, or as payment representing the fair market value of property which the entity has purchased; and(e) the applicable laws of the entity's country or territory of residence or the entity's formation documents require that, upon theentity's liquidation or dissolution, all of its assets must be distributed to a Governmental entity or other non-profitorganization, or escheat to the Government of the entity's country or territory of residence or any political sub-divisionthereof. Explanation.—For the purpose of this sub-clause, the following shall be treated as fulfilling the criteria provided in the saidsub-clause:—(I) an Investor Protection Fund referred to in Schedule III(27) of the Act; and(II) an Investor Protection Fund referred to in Schedule III(28) of the Act;(B) "controlling person" means the natural person who exercises control over an entity and includes a beneficial owner as determined under sub-rule (3) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 under the Prevention of Money-LaunderingAct, 2002 (15 of 2003). Explanation 1.—In determining the beneficial owner, the procedure specified in the following circular as amended from time to time shall beapplied:—(i) DBOD.AML.BC. No.71/14.01.001/2012-13, issued on the 18th January, 2013 by the Reserve Bank of India; or(ii) CIR/MIRSD/2/2013, issued on the 24th January, 2013 by the Securities and Exchange Board of India; or(iii) IRDA/SDD/GDL/CIR/019/02/2013, issued on the 4th February, 2013 by the Insurance Regulatory and Development Authority. Explanation 2.—In the case of a trust, the controlling person means the settlor, the trustees, the protector (if any), the beneficiaries or class ofbeneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case of a legal arrangement other thana trust, the said expression means the person in equivalent or similar position;(C) "non-financial entity" means any entity that is not a financial institution;(D) "passive non-financial entity" means,—(i) any non-financial entity which is not an active non-financial entity; or(ii) an investment entity described in sub-clause (B) of clause (c) of the Explanation to clause (3), which is not located in any of thejurisdictions specified by the Central Board of Direct Taxes in this behalf; or(iii) not a withholding foreign partnership or a withholding foreign trust;(E) an entity is a "related entity" of another entity if either entity controls the other entity, or the two entities are under common control. Explanation.—For the purpose of this clause control includes direct or indirect ownership of more than fifty per cent of the votes and value inan entity;(F) Subject to the provisions of clause (G), "passive income" includes income by way of,—(i) dividends;(ii) interest;(iii) income equivalent to interest;(iv) rents and royalties (other than rents and royalties derived in the active conduct of a business conducted, at least in part, by employeesof the non-financial entity);(v) annuities;(vi) the excess of gains over losses from the sale or exchange of financial assets;(vii) the excess of gains over losses from transactions (including futures, forwards, options, and similar transactions) in any financialassets;(viii) the excess of foreign currency gains over foreign currency losses;(ix) net income from swaps; or(x) amounts received under cash value insurance contracts;(G) Passive income will not include, in the case of a non-financial entity that regularly acts as a dealer in financial assets, any income from anytransaction entered into in the ordinary course of such dealer's business as such a dealer.(7) "relevant crypto-asset" shall have the same meaning as assigned in rule 241;
(8) "reporting financial institution" means, —(a) a financial institution (other than a non-reporting financial institution) which is resident in India, but excludes any branch of such institution,that is located outside India; and(b) any branch, of a financial institution (other than a non-reporting financial institution) which is not resident in India, if that branch is located inIndia;(9) "reportable person" means, —(a) one or more specified U.S. persons; or
(b) one or more persons other than, —(i) an entity the stock of which is regularly traded on one or more established securities markets;(ii) any entity that is a related entity of an entity mentioned in item (i);(iii) a Governmental entity;(iv) an international organisation;(v) a Central bank; or(vi) a financial institution, that is a resident of any country or territory outside India (except the United States of America) under the tax laws of such country or territory or anestate of a decedent who was a resident of any country or territory outside India (except the United States of America) under the tax laws of suchcountry or territory;(10) "Specified Electronic Money Product" means any product that satisfies following criteria: —(a) it is a digital representation of a single fiat currency;(b) it is issued on receipt of funds for the purpose of making payment transactions;(c) it is represented by a claim on the issuer denominated in the same fiat currency;(d) it is accepted in payment by a natural or legal person other than the issuer; and(e) it is, by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and at par value for the same fiat currencyupon request of the holder of the product. Explanation.—For the purposes of this clause, —(i) "Specified Electronic Money Product" does not include a product created for the sole purpose of facilitating the transfer of funds from acustomer to another person pursuant to instructions of the customer;(ii) A product is not created for the sole purpose of facilitating the transfer of funds if, in the ordinary course of business of the transferring Entity,either the funds connected with such product are held longer than 60 days after receipt of instructions to facilitate the transfer, or, if noinstructions are received, the funds connected with such product are held longer than 60 days after receipt of the funds;(iii) "fiat currency'' shall have the same meaning as assigned in rule 241.(11) "specified U.S. person" means a U.S. person, other than the persons referred to in sub-clauses (i) to (xiii) of clause (ff) of Article 1 of the FATCAagreement;(12) "U.S. person" means, —(a) an individual, being a citizen or resident of the United States of America;(b) a partnership or corporation organized in the United States of America or under the laws of the United States of America or any State thereof;(c) a trust if, —(i) a court within the United States of America would have authority under applicable law to render orders or judgments concerningsubstantially all issues regarding administration of the trust; and(ii) one or more U.S. persons have the authority to control all substantial decisions of the trust; or(d) an estate of a decedent who was a citizen or resident of the United States of America;(13) "U.S. reportable account" means a financial account maintained by a reporting financial institution and, pursuant to the due diligence proceduresprovided in rule 240, is identified to be held by one or more specified U.S. persons or by an entity not based in the United States of America with oneor more controlling persons which is a specified U.S. Person;(14) "U.S. source withholdable payment" means any payment of interest (including any original issue discount), dividends, rents, salaries, wages,premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, ifsuch payment is from sources within the United States of America but a U.S. source withholdable payment shall not include any payment that is nottreated as a withholdable payment in relevant Treasury Regulations of the United States of America;(15) "withholding foreign partnership" means a foreign partnership that has entered into a withholding agreement with the United States of America inwhich it agrees to assume primary withholding responsibility for all payments which are made to it for its partners, beneficiaries or owners;(16) "withholding foreign trust" means a foreign trust that has entered into a withholding agreement with the United States of America in which it agrees toassume primary withholding responsibility for all payments which are made to it for its partners, beneficiaries or owners.
Related sections
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- Section 97 — Safe harbour for eligible specified domestic transaction
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- Section 116 — Cancellation of an agreement
- Section 117 — Procedure for giving effect to rollback provision of an Agreement
- Section 118 — Relief in tax payable under section 206(1) due to operation of section 206(1)(i)
- Section 120 — Miscellaneous
- Section 121 — Application seeking to give effect to terms of any agreement under section 533(2)(p) and procedure for giving effect to decision under agreement
- Section 122 — Procedure to deal with requests for bilateral or multilateral advance pricing agreements
- Section 123 — Maintenance and furnishing of information and document by constituent entity of an international group under section 171
- Section 124 — Furnishing of report in respect of an international group under section 511
- Section 125 — Furnishing of authorisation and maintenance of documents, etc. for the purposes of section 176
- Section 126 — Conditions and activities for finance company located in any International Financial Services Centre for section 177
- Section 127 — Determination of consequences of impermissible avoidance arrangement
- Section 128 — Chapter XI relating to General Anti Avoidance Rule not to apply in certain cases
- Section 129 — "(2) Without prejudice to the provisions of sub-rule (1)(d), the provisions of Chapter XI shall apply to any arrangement, irrespective of the date on which ithas been entered into, in respect of the tax benefit obtained from the arrangement on or after the 1st April, 2017." Notice and Forms for reference under section 274
- Section 130 — Time limits
- Section 131 — Procedure before Approving Panel
- Section 132 — Remuneration
- Section 133 — Modes of payment for the purpose of section 187
- Section 134 — Exercise of option for taxation of royalty income from patent under section 194(1) [Table: Sl. No. 2]
- Section 135 — Calculation of net winnings from online games for purpose of section 194(1) [Table: Sl. No. 5]
- Section 136 — Exercise or withdrawal of option for new tax regime
- Section 137 — Form of report for computation of book profit of companies
- Section 138 — Form of report for computation of adjusted total income by certain persons other than a company
- Section 139 — Computation of exempt income of specified fund attributable to units held by non-resident under Schedule VI [Table: Sl. Nos. 1 to 4] to Act
- Section 140 — Determination of income of a specified fund attributable to units held by non-residents under section 210(2)
- Section 141 — Computation of exempt income of specified fund, attributable to investment division of an offshore banking unit under Schedule VI [Table: Sl. Nos. 1to 4] to Act
- Section 142 — Conditions referred to in Schedule VI [Note 1(g)(ii)(B)] to Act required to be fulfilled by an investment division of an offshore banking unit
- Section 143 — Determination of income of a specified fund attributable to investment division of an offshore banking unit under section 210(3)
- Section 144 — Other conditions required to be fulfilled by a specified fund as referred to in Schedule VI [Note 1(g)(i)] to Act
- Section 145 — Statements under sections 221(4), 222(2), 223(5) and 224(9)
- Section 146 — Rules related to application for exercising the option for tonnage tax scheme and other matters related to it
- Section 147 — Publication and circulation of order of Board under section 239(3)(a)
- Section 148 — Search and Seizure under section 247
- Section 149 — Procedure to requisition services under section 247(5) and to make a reference under section 247(9)
- Section 150 — Valuation under section 247(9)
- Section 151 — Requisition of books of account, etc. under section 248
- Section 152 — Release of remaining assets under section 250
- Section 153 — Distraint and sale
- Section 154 — Form of information under section 254(1)
- Section 155 — Disclosure of information related to assessees under section 258(2)
- Section 156 — Prescribed income-tax authority under section 259
- Section 157 — Persons exempt from obtaining Permanent Account Number under section 262
- Section 158 — Application for allotment of a Permanent Account Number
- Section 159 — Transactions in relation to which Permanent Account Number is to be quoted or applied for purposes of section 262(1)(f) and 262(10)(c) and (e)
- Section 160 — Time and manner in which persons referred to in rule 159 shall furnish a statement containing particulars of Form No. 97
- Section 161 — Transactions for purposes of section 262(9)(a)
- Section 162 — When PAN becomes inoperative under section 262(6)
- Section 163 — Conditions for furnishing return of income by persons other than a company or firm referred to in section 263(1)(a)(x)
- Section 164 — Forms, eligibility, verification etc. in respect of return of income
- Section 165 — Furnishing of updated return of income under section 263(6) read with [263(2)]
- Section 166 — Conditions for treating a return as defective return under section 263(7)
- Section 167 — Form of appeal to Joint Commissioner (Appeals) or Commissioner (Appeals) under section 358
- Section 168 — Prescribed person for verification of return for purposes of section 265 [Table: Sl. Nos. 3 and 9]
- Section 169 — Form of verification for furnishing information under section 268(1)(c)
- Section 170 — "I declare that to the best of my knowledge and belief, the information furnished in the statement/statements is correct and complete and other particularsshown therein are truly stated." Prescribed income-tax authority under section 268(3) for issue of notice under sub-section (1) thereof
- Section 171 — Forms for report of audit or inventory valuation under section 268(5)
- Section 172 — Procedure for purposes of determining expenses for audit or inventory valuation
- Section 173 — Jurisdiction of Valuation Officers as per section 2(110) read with section 269
- Section 174 — Day and time for inspection by Valuation Officers, etc., as per section 269(3)
- Section 175 — Prescribed authority for issue of notice under section 270(8)
- Section 176 — Procedure for faceless assessment, reassessment or recomputation under section 273(1)
- Section 177 — Modified return of income in respect of business reorganisation under section 314
- Section 178 — Application under section 288(1) [Table: Sl. No. 11] regarding credit of tax deduction at source
- Section 179 — Notice of demand under section 289
- Section 180 — Return of income in respect of block assessment under section 294(1)
- Section 181 — Common application for registration of non-profit organisation or for approval for the purposes of deduction under sec-tion 133(1)(b)(ii)
- Section 182 — Manner of computation of gains of commercial activities under sections 335(e), 344, 345 and 346
- Section 183 — Manner of computation of any portion of income applied by a registered non-profit organisation, directly or indirectly, for benefit of any relatedperson
- Section 184 — Exercise of options by a registered non-profit organisation under section 341(7) for deemed application under section 341(5)
- Section 185 — Furnishing of statement by registered non-profit organisation under section 342(1) for accumulating or setting apart any part of its regular income
- Section 186 — Application under section 342(5) for change of purpose for which income has been accumulated or set apart
- Section 187 — Books of account and other documents to be kept and maintained by a registered non-profit organisation
- Section 188 — Report of audit in case of registered non-profit organisations under section 348
- Section 189 — Method of valuation for the purposes of computing fair market value of assets and liabilities under section 352(2) for accreted income
- Section 190 — Furnishing of statement of particulars in respect of donation and certificate to donor under section 354(1)
- Section 191 — Mode of service of any order referred to in section 358(3)(b)
- Section 192 — Production of additional evidence before Joint Commissioner (Appeals) and Commissioner (Appeals) under section 533(2)(x)
- Section 193 — Form of appeal and memorandum of cross-objections to Appellate Tribunal under section 362
- Section 194 — Declaration under section 375
- Section 195 — Application under section 376 to defer filing of appeal before Appellate Tribunal or the jurisdictional High Court
- Section 196 — Constitution of Dispute Resolution Committee under section 379
- Section 197 — Application for resolution of dispute before the Dispute Resolution Committee under section 379
- Section 198 — Power to reduce or waive penalty imposable or grant immunity from prosecution or both under section 379
- Section 199 — Definitions
- Section 200 — Application for obtaining an advance ruling under section 383
- Section 201 — Certification of copies of advance rulings pronounced by Board for Advance Rulings under section 384(8)
- Section 202 — Form and manner of filing appeal to High Court on ruling pronounced or order passed by Board for Advance Rulings under section 389(1)
- Section 203 — Credit for tax deducted or collected at source
- Section 204 — Furnishing of particulars for deduction of tax at source from income under head "Salaries"
- Section 205 — Furnishing of evidence of claims by employee under section 392(5)(b) for deduction of tax from income under head "Salaries"
- Section 206 — Rate of exchange for conversion into rupees of income expressed in foreign currency
- Section 207 — Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency
- Section 208 — Furnishing of declaration and evidence of claims by specified senior citizen under section 393(1) [Table: Sl. No. 8(iii)]
- Section 209 — Application by payee for certificate authorising receipt of interest and other sums without deduction of tax
- Section 211 — Declaration by person claiming receipt of certain incomes without deduction of tax under section 393(6)
- Section 212 — Declaration by a buyer for no collection of tax at source under section 394(2)
- Section 213 — Application for grant of certificates for deduction or collection of income-tax at any lower rates, or no deduction of income-tax
- Section 214 — Application by payer for grant of certificate under section 395(2) or section 400(3) for determination of appropriate proportion of sum (other thansalary), payable to non-resident, chargeable in case of recipients
- Section 215 — Certificate of tax deducted or collected at source to be furnished under section 395(4)
- Section 216 — Application for allotment of a tax deduction and collection account number
- Section 217 — Conditions under section 397(2)(c) for non-application of deduction of tax at higher rate, in case of non-residents
- Section 218 — Time and mode of payment to Government account of tax deducted or collected at source or tax paid under section 392(2)(a)
- Section 219 — Statement of deduction or collection of tax at source under section 397(3)(b)
- Section 220 — Furnishing of information for payment to a non-resident, not being a company, or to a foreign company
- Section 221 — Form for furnishing certificate of accountant under section 398(2) for person responsible for deduction or collection of tax as per section 394(1)[Table: Sl. Nos. 1 to 5 and 9] not to be deemed to be an assessee in default
- Section 222 — Notice of demand under section 289
- Section 223 — Estimate of advance tax under section 407(8)
- Section 226 — Tax recovery officer to exercise or perform certain powers and functions of an Assessing Officer under section 413
- Section 227 — Prescribed authority for tax clearance certificates under section 420
- Section 228 — Forms and certificates for the purposes of section 420
- Section 231 — Form of application under section 440
- Section 232 — Service of notice, summons, requisition, order and other communication under section 501
- Section 233 — Authentication of notices and other documents
- Section 234 — Furnishing of annual statement by a non-resident having liaison office in India
- Section 235 — Information or documents to be furnished under section 506
- Section 236 — Form of statement to be furnished by producers of cinematograph films or persons engaged in specified activity
- Section 237 — Furnishing of statement of financial transaction
- Section 239 — Information to be maintained and reported
- Section 240 — Due diligence requirement
- Section 241 — Definitions for purposes of rules 242, 243 and 244
- Section 242 — Obligation for reporting transaction of crypto-asset under section 509
- Section 243 — Reporting requirements for transaction of crypto-asset under section 509
- Section 244 — Due diligence procedures under section 509
- Section 245 — Annual Information Statement
- Section 246 — Application for registration as valuer under section 514
- Section 247 — Qualification of registered valuer for the purposes of section 514
- Section 248 — Charging of fee and submission of valuation report under section 514
- Section 249 — Removal from register of names of valuers and restoration
- Section 250 — Definitions for the purposes of rules 251 to 268
- Section 251 — Accountancy examinations recognised
- Section 252 — Educational qualifications prescribed
- Section 253 — Nature of business relationship
- Section 254 — Appearance by Authorised Representative in certain cases
- Section 255 — Register of income-tax practitioners
- Section 256 — Application for registration
- Section 258 — Cancellation of certificate
- Section 259 — Cancellation of certificate obtained by misrepresentation
- Section 260 — Removal of name of authorised income-tax practitioner who is insolvent or on whom penalty has been imposed
- Section 261 — Prescribed authority to order an inquiry
- Section 262 — Charge-sheet
- Section 263 — Inquiry Officer
- Section 264 — Proceedings before Inquiry Officer
- Section 265 — Order of the prescribed authority
- Section 266 — Procedure if no Inquiry Officer appointed
- Section 268 — Powers of prescribed authority and Inquiry Officer
- Section 269 — Procedure to be followed in calculating interest under section 533(2)(u)
- Section 270 — Determination of income, being partly from agricultural and partly from business
- Section 271 — Income from manufacture of rubber, coffee and tea
- Section 272 — Deduction in respect of expenditure on production of feature films
- Section 273 — Deduction in respect of expenditure on acquisition of distribution rights of feature films
- Section 274 — Procedure for investment fund for availing benefit under section 9(12) read with Schedule I to Act
- Section 275 — Approval of the investment fund at its option for purposes of section 9(12)
- Section 276 — Statement to be furnished by eligible investment fund under section 9(12) read with Schedule I to the Act
- Section 277 — Calculation of taxable interest relating to contribution in a provident fund or recognised provident fund, exceeding specified limit
- Section 278 — Conditions for purposes of Schedule III [Table: Sl. No. 8] to the Act
- Section 279 — Limits for the purposes of Schedule III [Table: Sl. No. 11] to the Act
- Section 280 — Allowances for purposes of Schedule III [Table: Sl. Nos. 12 and 13] to the Act
- Section 281 — Circumstances and conditions for purposes of Schedule III [Table: Sl. No. 16] to the Act
- Section 282 — Notification of pension fund and other conditions to be satisfied by the pension fund
- Section 283 — Computation of minimum investment and exempt income for purposes of Schedule V [Table: Sl. No. 7] to Act
- Section 284 — Conditions for the purpose of Schedule VI [Table: Sl. No. 5] to the Act
- Section 285 — Computation of exempt income in nature of capital gains in connection with relocation of original fund, etc
- Section 286 — Requirements for approval of a fund for welfare of employees and their dependents under Schedule VII [Table: Sl. No. 2] to Act
- Section 287 — Percentage of Government grant for considering any University, hospital, or any other institution, as substantially financed by the Government forpurposes of Schedule VII [Table: Sl. Nos. 17 and 18] to Act
- Section 288 — Procedure for setting up an Infrastructure Debt Fund for purpose of exemption under Schedule VII [Table: Sl. No. 46] to Act
- Section 289 — Rules for functioning of an electoral trust
- Section 290 — Report of audit of accounts to be furnished under Schedule IX read with section 48 for deduction for tea development account, coffee developmentaccount and rubber development account
- Section 291 — Report of audit of accounts to be furnished under Schedule X read with section 49 for deduction for site restoration fund
- Section 292 — Investment of fund moneys
- Section 293 — Nomination
- Section 294 — Accounts
- Section 296 — Application for recognition
- Section 297 — Order of recognition
- Section 298 — Withdrawal of recognition
- Section 300 — Appeal under paragraph 13(1) of Part A of Schedule XI to the Act
- Section 301 — Definitions for purposes of rules 302 to 315
- Section 302 — Conditions regarding trust and trustees
- Section 303 — Investment of fund moneys
- Section 305 — Ordinary annual contributions
- Section 306 — Initial contributions
- Section 307 — Scheme of insurance or annuity
- Section 308 — Commutation of annuity
- Section 309 — Beneficiary not to have any interest in insurance and employer not to have any interest in moneys of fund
- Section 310 — Penalty, where employee assigns or charges interest in fund
- Section 312 — Arrangements for winding up, etc., of fund
- Section 313 — Application of approval
- Section 314 — Amendment of rules, etc., of fund
- Section 315 — Appeal under paragraph 9(1) of Part B of Schedule XI to the Act in case of superannuation fund
- Section 316 — Definitions for purposes of rules 317 to 329
- Section 317 — Conditions regarding trust and trustees
- Section 318 — Investment of fund moneys
- Section 319 — Nomination
- Section 320 — Admission of directors to a fund
- Section 321 — Ordinary annual contributions
- Section 322 — Initial contributions
- Section 324 — Employer not to have interest in fund moneys
- Section 325 — Arrangements for winding up, etc., of business
- Section 326 — Arrangements for winding up of the fund
- Section 327 — Application for approval
- Section 328 — Amendment of rules, etc., of fund
- Section 329 — Appeal under paragraph 9(1) of Part B of Schedule XI to the Act in case of gratuity fund
- Section 330 — Limits of reserve for unexpired risks
- Section 331 — Procedure for approval under paragraph (1)(z)(i) and (ii) of Schedule XV to the Act
- Section 332 — Electronic furnishing of Forms, returns, statements, reports, orders, certificates, etc
- Section 333 — Electronic payment of tax, interest, fee and penalty