Conditions for the purpose of clause (4E) of section 10

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....erivatives; or (b) distribution of income on offshore derivative instruments, under clause (4E) of section 10 of the Act, shall be exempted subject to fulfilment of the following conditions, namely:-- (i) the non-deliverable forward contract or offshore derivative instrument or over-the-counter derivative is entered into by the non-resident with an offshore banking unit of an International Fi....

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....he difference between an exchange rate agreed before and the actual spot rate at maturity, with the spot rate being taken as the domestic rate or a market determined rate and such contract being settled with a single payment in a foreign currency; (iii) "offshore banking unit" means a banking branch Unit located in an International Financial Services Centre, as referred to in sub-secti....

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....d 01-08-2022 5. Substituted vide NOTIFICATION NO. 87/2022 dated 01-08-2022 before it was read as, "Explanation.- For the purpose of this rule, the expression,- (i) "permanent establishment" shall have the meaning assigned to it in clause (iiia) of section 92F; (ii) "a non-deliverable forward contract" shall mean a contract for the difference between an exchange rate....