Notification No. 51/2013 - Income tax

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION

New Delhi, the 4th July, 2013

S.O. 2017(E).— 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 fulfil 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 fulfil 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 Incometax (Intelligence and Criminal Investigation), New Delhi within fifteen days from
the last day of each month to which such statement relates.

Link to the notification : http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=NOTF&schT=&csId=2b9c9966-45c9-4df2-8275-248b2a18b365&NtN=&yr=ALL&sec=&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws