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Income-tax Rules, 2026 | Rule 240 of 333

Rule 240 - Due diligence requirement for reportable accounts

Reviewed by CA Nikhil Gupta · Last reviewed 29 August 2026

Local extract available Legacy mapping: 114H

240Rule number
1057Local text characters
0Linked Forms

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Source and status control

Primary authority: Notification No. 22/2026 / G.S.R. 198(E)

Currentness control: Base Rules effective 1 April 2026. Check later amendments, corrigenda and portal implementation before action.

Local statutory extract - official source controls

Rule text held in the production corpus

Due diligence requirements. 240. This rule sets out the due-diligence procedure a reporting financial institution must follow to identify reportable accounts for the purposes of rule 239 (broadly following the internationally-agreed Common Reporting Standard framework already familiar from the 1962 Rules). Given its considerable length, it is presented here as a confirmed structural overview rather than a verbatim quotation; readers needing the precise wording of any specific sub-rule should consult the official consolidated text. Its confirmed structure covers: the basic obligation to identify and annually report reportable accounts; definitions of terms used in the due-diligence process (including documentary evidence and relevant account-value thresholds); distinct review procedures for pre-existing and new accounts, and for individual and entity account holders, including self-certification and reasonableness checks; and additional implementation and timing provisions, including provisions addressing accounts connected to crypto-assets.

Local extract SHA-256: 7fd61598e45b725a9dd6f74deff79518e27ef4c4653fbbc61c9c6166b64aa8bc. This hash authenticates the local extract only; it does not certify that every amendment, table or Gazette footnote has been consolidated.

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Official starting point
www.incometaxindia.gov.in

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