A key change to Rule 21AIA of the Income-tax Rules, 1962 has been notified by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance. The notification, G.S.R. 566(E), dated August 21, 2025, amends the rules to align with Section 10(4D) of the Income-tax Act, 1961.
Key Changes
The notification makes two primary changes to Rule 21AIA:
- Sub-rule (4) is omitted. This sub-rule will be removed from the Income-tax Rules.
- The existing Explanation is replaced with a new one. The new explanation clarifies that the term “specified fund” will have the same meaning as defined in sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 of the Act.
These amendments are effective from the date of their publication in the Official Gazette.
