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Rule 21ACA: Conditions and activities for the Finance Company located in any International Financial Services Centre for section 94B

The Income-tax Rules, 1962Central Act · 1962

[Conditions and activities for the Finance Company located in any International Financial Services Centre for section 94B.

(1) For the purposes of clause (iv) of sub-section (5) of section 94B, the Finance Company located in any International Financial Services Centre shall only carry out one or more of the following activities, namely:-

(i) lending in the form of loans, commitments and guarantees, credit enhancement, securitisation, financial lease;

(ii) factoring and forfaiting of receivables; or

(iii) functions of Global or Regional Corporate Treasury Centre such as borrowings, lending, hedging of currency or commodity risk or investments, cash management, structured credit, intra group financing, financial budgeting and similar other such treasury services and activities.

(2) The interest being paid by such Finance Company, being the borrower, in respect of any debt issued by a non-resident, shall be in foreign currency.

Explanation.—For the purposes of this rule, the expressions—

(i) "Finance Company" means a finance company as defined in clause (e) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); and

(ii) "International Financial Services Centre" shall have the meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).]

Where this provision sits

ActThe Income-tax Rules, 1962
Rule21ACA
Marginal noteConditions and activities for the Finance Company located in any International Financial Services Centre for section 94B
JurisdictionCentral
StatusIn force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • inserted. Inserted by the IT (Second Amdt.) Rules, 2025, w.e.f. 27-1-2025.

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