REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 452] NEW DELHI, TUESDAY, OCTOBER 18, 1977/ASVINA 26, 1899
Separate paging is given to this Part in order that it may be filed
as a separate compilation
CENTRAL BOARD OF DIRECT TAXES
NOTIFICATION
INCOME-TAX
New Delhi, the 18th October 1977
S.O. 730(E).—In exercise of the powers conferred by 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, name- l y :-
1 (1) These rules may be called the Income-tax (Eighth Amendment) Rules, 1977
(2) They shall come into force on the 1st day of November, 1977, 2. In the Income-tax Rules, 1962,—
(a) for rule 26, the following rule shall be substituted, namely: —
'26 Rate of exchange for the purpose of deduction of tax at source on income payable In foreign currency.—For the purpose of deduction of tax at source on any income payable in foreign currency, the rate of exchange for the calculation of the value in rupees of such income payable to an assesses outside India shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source under the provisions of Chapter XVIIB by the person responsible for paying such income.
(2709)
27JO THE GAZBTTE OF INDIA EXTRAORDINARY PAHT II—SEC. 3(il>Explanution.^-FoT the purposes of this rule, "telegraphic transfer buying, rate", in relation to a foreign currency, means the rate of ex- change adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955) for buying such currency where such currency is made available to that bank through a telegraphic transfer';
(b) for rule 115, the. following rule shall be substituted, namely:
115. Rate of exchange for conversion into rupees of income expressed-
\n foreign currency.—The rate of exchange for the calculation of the value in rupees of any income accruing or arising or deemed to accrue or arise to the assessee in foreign currency or received or deemed to be received by him or on his behalf in foreign currency shall be the telegraphic transfer buying rate of such currency as on the specified date.
Explanation^For the purposes of this rule,—
(1) "telegraphic transfer buying rate" shall have the same meaning
as in the Explanation to rule 26;
(2) "specified date" means—
(a) in respect of income chargeable under the head "Salaries", the Init day of the month immediately preceding the month in which the salary is due, or is paid m advance or in arrears;
(b) in respect of income chargeable under the head "Interest on securities", the last day of the month immediately preceding the month in which the income is due;
(c) in respect of income chargeable under the heads '"Income from house property", "Profits and gaiins of business or profession" [not being income referred to in clause (d)] and "Income from other sources" (not bemg income by way of dividends), the last day of thel previous year of the assessee;
(d) in respect of income chargeable under the head "Profits and gains of business or profession" in the case of a non-resident engaged in the business of operation of ships, the last day of the month immediately preceding the month in which such income is deemed to accrue or arise in India;
(e) in respect of income by wav of dividends, on the last day of the month immediately preceding the month in which the divi- dend is declared, distributed or paid by the company; (f) m respect of Income chargeable under the head "Capital gams!', the last day of the month immediately preceding the month m which the capital asset is transferred,'
[No 2015/F No H2(14)/74-TPL]
s N SHENDE,. Secretary, Central Board of Direct Taxes.