Income-Tax
(Ninth Amendment) Rules, 2013 – Insertion of Rules 6DDC, 6DDD and Form No. 3BC
Notification No. 51/2013, [F. No. 142/14/2013-TPL]/ SO 2017(E),
dated 04.07.2013
In exercise of the powers conferred by clause (e) of the proviso
to clause (5) of Section 43 read with Section 295 of the Income–tax Act, 1961
(43 of 1961), the Central Board of Direct Taxes hereby makes the following
rules further to amend the Income–tax Rules, 1962, namely : -
1. (1)
These rules may be called the Income-tax (9th Amendment)
Rules, 2013.
(2)
They shall come into force on the date of their publication in the Official
Gazette.
2. In the Income-tax Rules, 1962, in Part II, in sub – part C, after rule 6DDB, the following
rules shall be inserted, namely:-
“6DDC.
Conditions that a recognised association
is required to fulfill to be notified as a recognised association for the
purposes of clause (e) of the proviso to clause (5) of Section 43. –
For the purposes
of clause (e) of the proviso to clause (5) of Section 43, a recognised
association shall fulfill the following conditions in respect of trading in
derivatives, namely:-
(i)
the recognised association shall have the approval of the Forward Markets
Commission established under the Forward Contracts (Regulation) Act, 1952 (74
of 1952) in respect of trading in derivatives and shall function in accordance
with the guidelines or conditions laid down by the Forward Markets Commission;
(ii)
the recognised association shall ensure that the particulars of the client
(including unique client identity number and PAN) are duly recorded and stored
in its databases;
(iii)
the recognised association shall maintain a complete audit
trail of all transactions (in respect of derivative market) for a period
of seven years on its system;
(iv)
the recognised association shall ensure that transactions (in respect of
derivative market) once registered in the system are not erased;
(v)
the recognised association shall ensure that the transactions (in respect of
derivative market) once registered in the system are modified only in cases of
genuine error and maintain data regarding all transactions (in respect of
derivative market) registered in the system which have been modified and submit
a monthly statement in Form No. 3BC to the Director
General of Income-tax (Intelligence and Criminal Investigation), New Delhi
within fifteen days from the last day of each month to which such statement
relates.
6DDD. Notification
of a recognised association for the purposes of clause (e) of the proviso to
clause (5) of Section 43 -
(1)
An application for notification of a recognised
association (as per clause (j) of Section 2 of the Forward Contracts
(Regulation) Act, 1952) as a recognised association for the purposes of clause
(e) of the proviso to clause (5) of section 43 may be made to the Member (Legislation),
Central Board of Direct Taxes, North Block, New Delhi.
(2)
The application referred to in sub – rule (1) shall be
accompanied with the following documents, namely:-
(i)
approval granted by Forward Markets Commission for trading in derivatives;
(ii)
up – to – date rules, bye – laws and trading regulations of the recognised
association;
(iii)
confirmation regarding fulfilling the conditions referred
to in clause (ii) to clause (v) of rule 6DDC ;
(iv)
such other information as t he recognised association may like to place before
the Central Government.
(3)
The Central Government may call for such other information from the applicant
as it deems necessary for taking a decision on the application.
(4)
The Central Government, after examining the information furnished by the
recognised association under sub – rule (2) or sub – rule (3), shall notify the
recognised association as a recognised association for the purposes of clause
(e) of the proviso to clause (5) of section 43 or issue an order rejecting the
application before the expiry of four months from the end of the month in which
the application is received.
(5)
The notification referred to in sub – rule (4) shall be effective until the
approval granted by the Forward Markets Commission is withdrawn or expired, or
the notification is rescinded by the Central Government. ”.
3. In the said rules, in Appendix – II,
after Form No. 3BB, the following Form shall be inserted, namely: –
.
.
.
.
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