CBDT notifies Income-tax (7th Amendment) Rules, 2020

The Central Board of Direct Taxes (CBDT) vide a Notification dated 5th March 2020 has issued the Income-tax (7th Amendment) Rules, 2020. This Amendment has introduced a new Rule 17C (va) to the Income-tax Rules,1962 which deals with forms or modes of investment or deposits by a charitable or religious trust or institution.

As per the new Rule 17C(va); investment made by a person authorized under section 4 of the Payment and Settlement Systems Act, 2007, in the equity share capital or bonds or debentures of a company —

  1. which is engaged in operations of retail payments system or digital payments settlement or similar activities in India and abroad and is approved by the Reserve Bank of India for this purpose; and
  2. in which at least 51% of equity shares are held by National Payments Corporation of India.

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