The Extract of Rules 43, 44 and 45 of the Draft Income-tax Rules, 2026 lays down specific procedural and eligibility requirements under Sections 59(4) and 61(2) of the Act. Rule 43 prescribes that the audit report of accounts of a non-resident (not being a company) or a foreign company, required under Section 59(4), must be furnished in Form No. 24. Rule 44 sets out conditions for a non-resident engaged in the business of operating cruise ships under Section 61(2) [Table: Sl. No. 2]. Such assessee must operate a passenger ship with a carrying capacity of more than 200 passengers or length of at least 75 meters, meant for leisure and recreational purposes, with appropriate dining and cabin facilities. The ship must undertake scheduled voyages or shore excursions touching at least two Indian seaports or the same seaport twice, primarily carry passengers rather than cargo, and comply with procedures or guidelines issued by the Ministry of Tourism or Ministry of Shipping. Rule 45 prescribes conditions for a resident company under Section 61(2) [Table: Sl. No. 6], requiring it to establish or operate an electronics manufacturing or connected facility in India under Central Government schemes notified by the Ministry of Electronics and Information Technology, and remain eligible under such schemes throughout the relevant tax year. “Electronics goods” include goods covered under the notified schemes, including their supply chain ecosystem.
Extract of Rule No. 43, 44 and 45 of Draft Income-tax Rules, 2026
Rule 43
Form of report of audit to be furnished under section 59(4) of the Act.
The report of audit of accounts of the non-resident (not being a company) or a foreign company, which is required to be furnished under section 59(4) of the Act shall be in Form No. 24.
Rule 44
Conditions to be fulfilled by a non-resident, engaged in the business of operation of cruise ships under section 61(2) [Table: Sl. No. 2].
Draft Income-tax Rules, 2026
For the purposes of section 61(2) [Table: Sl. No. 2], a non-resident assessee, engaged in the business of operation of cruise ships shall,—
i. operate a passenger ship having a carrying capacity of more than two hundred passengers or length of seventy-five meters or more, for leisure and recreational purposes and having appropriate dining and cabin facilities for passengers;
ii. operate such ship on scheduled voyage or shore excursion touching at least two sea ports of India or same sea ports of India twice;
iii. operate such ship primarily for carrying passengers and not for carrying cargo; and
iv. operate such ship as per the procedure and guidelines if any, issued by the Ministry of Tourism or Ministry of Shipping.
Rule 45
Conditions to be fulfilled by a resident company for the purposes of section 61(2) [Table: Sl. No. 6].
(1) For the purposes of section 61(2) [Table: Sl. No. 6], a resident company shall, —
(a) be establishing or operating electronics manufacturing facility or a connected facility for manufacturing or producing electronic goods, article or thing in India under the schemes notified by the Central Government in the Ministry of Electronics and Information Technology and as modified from time to time; and
(b) not become ineligible for the aforementioned schemes at any time of the tax year for which tax is to be calculated for the income of the non-resident.
(2) For the purposes of this rule, ‘electronics goods’ shall mean goods covered under the aforementioned schemes, including their supply chain ecosystem.
