Income Tax (Fifth Amendment) Rules, 2009
In exercise of the powers conferred by sub-section (1) of 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 (Fifth Amendment) Rules, 2009.
(2) They shall come into force with effect from the first day of April. 2009.
2. In the Income-tax Rules, 1962, in rule 67, for sub-rule (2) the following shall be substituted, namely:-
"(2) The manner of investment referred to in sub-rule (1) shall be in accordance with the following Table, namely:-
| SI. No. | Investment | Maximum percentage amount to be invested in items referred to in column (2) |
| (1) | (2) | (3) |
| (i) | (a) in Government securities; (b) Other securities, as defined in section 2(h) of the Securities Contract (Regulation) Act, 1956, the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government, or any State Government, except those covered under clause (ii)(a) below: and/or (c) units of mutual funds set up as dedicated funds for investment in | Fifty five per cent. |
| Government securities and regulated by the Securities and Exchange Board of India. | ||
| (ii) | (a) Debt securities with maturity of not less than three years tenure issued by Bodies Corporate, including banks and public financial institutions; (b) Term Deposit Receipts of not less than one year duration issued by scheduled commercial banks fulfilling all the following criteria: (i) it has made profit continuously for immediately preceding three years; (ii) it is maintaining a minimum Capital to Risk Weighted Assets Ratio of 9 per cent; (iii) it is having net non-performing assets of not more than 2 per cent. of the net advances; and (iv) it is having a minimum net worth of not less than rupees 200 crore; and/or (c) Rupee Bond having an outstanding maturity of at least three years issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation and the Asian Development Bank. | Forty per cent |
| (iii) | Money market instruments including units of money market mutual funds | Five per cent |
| (iv) | Shares of companies on which derivatives are available in Bombay Stock Exchange or National Stock Exchange or equity linked schemes of mutual funds regulated by the Securities and Exchange Board of India. | Fifteen per cent |
Provided that any moneys...
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