Amendments Income Tax Rule 1962, rule 114F, 114G, 114H. - Regarding obligations of reporting financial institution in respect of each reportable account

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....dinary course of a banking or similar business" shall be substituted by the phrase "depository institution": Provided further that for an account other than a U.S. reportable account, a "depository account" shall also include - (i) an account or notional account that represents all specified electronic money products held for the benefit of a customer; and (ii) an account that holds one or more central bank digital currencies for the benefit of a customer'; (II) after clause (a), the following clause shall be inserted, namely:- '(aa) "central bank digital currencies" means any digital fiat currency issued by a Central Bank;'; (III) in clause (h),-- (i) in sub-clause (vi), after item (D), the following shall be inserted, namely:-- "(E) a foundation or capital increase of a company provided that the account satisfies the following requirements, namely: - (i) the account is used exclusively to deposit capital that is to be used for the purpose of the foundation or capital increase of a company, as prescribed by law; (ii) any amounts held in the account are blocked until the Reporting Financial In....

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.... of item(iii), the term "exchange transaction'' means any - (i) exchange between relevant crypto-assets and fiat currencies; and (ii) exchange between one or more forms of relevant crypto-assets;" (II) in sub-clause (B), below Explanation 2, the following proviso shall be inserted, namely:-- "Provided that for an account other than a U.S. reportable account, the provisions of sub-clause (B) and Explanation 1 shall apply with the effect that the phrase "financial assets" shall be substituted by the phrase "financial assets or relevant crypto-assets"."; (d) in clause (5),-- (i) in sub-clause (a), in item (i), for the words "depository institution;", the following shall be substituted, namely:-- "depository institution; or (ii) with respect to the activity of maintaining central bank digital currencies for account holders which are not financial institutions, governmental entities, international organizations or central banks: Provided that the provisions of item(ii) shall apply in respect of an account other than a U.S. reportable account;"; (ii) after sub-clause (h), the following sub-clause shall be....

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....e substituted, namely:-- "(vi) the excess of gains over losses from the sale or exchange of financial assets;" (g) in clause (8), in sub-clause (b), for sub-clauses (i) and (ii), the following sub-clauses shall be substituted, namely:-- "(i) an entity, the stock of which is regularly traded on one or more established securities markets; (ii) any entity that is a related entity of an entity mentioned in item (i);"; (h) after clause (9), the following shall be inserted, namely:-- "(9A) "Specified Electronic Money Product" means any product that satisfies following criteria, namely:- (a) it is a digital representation of a single fiat currency; (b) it is issued on receipt of funds for the purpose of making payment transactions; (c) it is represented by a claim on the issuer denominated in the same fiat currency; (d) it is accepted in payment by a natural or legal person other than the issuer; and (e) it is, by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and at par value for the same fiat currency upon request of the holder of the product. Explana....

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....viso shall be inserted, namely:-- "Provided that in the case of an account other than a U.S. reportable account, a reporting financial institution shall also maintain and report the type of account and whether the account is a pre-existing account or a new account;"; (iv) in item (ii) of clause (e), the following shall be substituted, namely:-- "(ii) the total gross proceeds from the sale or redemption of financial assets paid or credited to or with respect to the account during the calendar year with respect to which the reporting financial institution acted as a custodian, broker, nominee, or otherwise as an agent for the account holder;" (v) after clause (f), the following clause shall be inserted, namely:-- "(fa) in the case of an account other than U.S. reportable account, where any equity interest is held in an investment entity that is a legal arrangement, the role(s) by virtue of which the reportable person is an equity interest holder;"; (b) in sub-rule (4), after the proviso, the following proviso shall be inserted, namely:-- "Provided further that for an account other than a U.S. reportable account, the reporting f....