Income-tax (Tenth Amendment) Rules, 2024 - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head “Profits and gains of business or profession - 124/2024 - Income Tax

New Income-Tax Rules Introduce Safe Harbour for Foreign Diamond Mining Companies, Effective April 2024, with Profit Criteria.

The Income-tax (Tenth Amendment) Rules, 2024, introduce Safe Harbour Rules for foreign companies engaged in diamond mining. These rules, effective from April 1, 2024, amend the Income-tax Rules, 1962, to include assessment year 2024-25. Eligible businesses selling raw diamonds in special zones can opt for safe harbour if profits are at least 4% of gross receipts. Deductions and set-offs are limited under these rules. The rules require eligible assessees to submit Form No. 3CEFC to the Assessing Officer before filing their income tax return. The amendment applies retrospectively to the assessment year 2024-25.