On 21 July 2026, the Central Board of Direct Taxes (CBDT) notified the Income-tax (Second Amendment) Rules, 2026. The amendment revises the definition of ‘specified fund’ for the purposes of the Rules.
The revised provisions came into effect on 21 July 2026.
Key Points:
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The amendment substitutes Rule 157(5)(c) of the Income-tax Rules, 2026, changing the meaning of ‘specified fund’ under the Rules.
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A “specified fund” now includes a fund set up in India as a trust, company, LLP or body corporate, if it is registered as a Category I or Category II Alternative Investment Fund (AIF).
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These funds should be regulated under either of the following:
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An IFSCA-regulated fund is treated as a “specified fund” if it is located in an International Financial Services Centre (IFSC).
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The definition also covers any fund mentioned in Schedule VI [Note 1(g)] of the Income-tax Act, 2025.
Also Read: CBDT Notifies GAAR Clarifications Under Income-tax (Amendment) Rules, 2026
[Income-tax (Second Amendment) Rules 2026, dated 21-7-2026]
