Central Board of Direct Taxes issued this notification to amend the Income-tax Rules, 1962.

The amendment modifies Rule 10U of the Income-tax Rules, 1962. Clause (d) of sub-rule (1) is substituted. Sub-rule (2) is also substituted to specify applicability of provisions of Chapter X-A in relation to arrangements and tax benefits, including reference to income arising from transfer of investments made before April 1, 2017. The changes apply to persons covered under Rule 10U and arrangements to which Chapter X-A applies.

1. (1) These rules may be called the Income-tax (Tenth Amendment) Rules, 2026.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in rule 10U, —

(a) in sub-rule (1), for clause (d), the following clause shall be substituted, namely: —

“(d) any income accruing or arising to, or deemed to accrue or arise to, or received or deemed to be received by, any person from transfer of such investments which were made before the 1st day of April, 2017 by such person.”;

(b) for sub-rule (2), the following sub-rule shall be substituted, namely: —

“(2) The provisions of Chapter X-A shall apply to any arrangement, irrespective of the date on which it has been entered into, in respect of the tax benefit obtained from the arrangement on or after the 1st day of April, 2017, except for that income which accrues or arises to, or deemed to accrue or arise to, or is received or deemed to be received, by any person from transfer of such investments which were made before the 1st day of April, 2017 by such person.”