Rule 238: For the purposes of this rule and rules 239 and 240,—

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Rule 238 - For the purposes of this rule and rules 239 and 240,—

238. For the purposes of this rule and rules 239 and 240,— (1) "financial account" means an account (other than an excluded account) maintained by a financial institution, and includes— (i) a depository account; (ii) a custodial account; (iii) in the case of an investment entity, any equity or debt interest in the financial institution. Explanation.—For the purposes of this sub-clause "financial account" shall not include any equity interest or debt interest in an entity that is an investment en

(i) a retirement account or pension account that satisfies the following requirements: — (A) the account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the provision of retirement or pension benefits (including disability or death benefits); (B) the account is tax-favoured where contributions to the account that would otherwise be subject to tax are deductible or excluded from the gross total income of the account

(iii) the account is closed or transformed into an account in the name of the company after the foundation or capital increase; (iv) any repayments resulting from a failed foundation or capital increase, net of service provider and similar fees, are made solely to the persons who contributed the amounts; (v) the account has not been established more than 12 months ago; and (vi) the account is not a U.S. reportable account; (vii) in the case of an account other than a U.S. reportable account, a d

(ii) with respect to the activity of maintaining central bank digital currencies for account holders which are not financial institutions, governmental entities, international organisations or central banks but the provisions of this item shall apply in respect of an account other than a U.S. reportable account; (b) a Treaty Qualified Retirement Fund; a Broad Participation Retirement Fund; a Narrow Participation Retirement Fund; or a Pension Fund of a Governmental entity, International Organizat

(b) the fund receives at least fifty per cent of its total contributions other than transfer of assets from other plans referred to in clauses (D) to (G) or from retirement and pension accounts referred to in sub-clause (i) of clause (h) of Explanation to clause (1) from the sponsoring employers; (c) distributions or withdrawals from the fund are allowed only in the event of retirement, disability or death except rollover distributions to other retirement funds referred to in clauses (E) to (G),

(b) advertises in print media or on a radio or television station which is distributed or aired primarily within India but is also incidentally distributed or aired in other countries, provided that the advertisement does not specifically indicate that the financial institution provides financial accounts or services to non-residents, and does not otherwise target or solicit customers or account holders who are resident of any country or territory outside India for tax purposes; (iv) the financi

(I) the sponsoring entity is authorised to act on behalf of the financial institution (such as a fund manager, trustee, corporate director, or managing partner) to fulfil applicable registration requirements of the United States of America; (II) the sponsoring entity has registered as a sponsoring entity with the United States of America; (III) if the sponsoring entity identifies any U.S. reportable account with respect to the financial institution, the sponsoring entity registers the financial

(v) the entity is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a financial institution, provided that the entity shall not qualify for this exception after the date that is twenty four months after the date of the initial organisation of the entity; or (vi) the entity was not a financial institution in the past five years, and is in the process of liquidating its assets or is reorgan

(b) one or more persons other than, — (i) an entity the stock of which is regularly traded on one or more established securities markets; (ii) any entity that is a related entity of an entity mentioned in item (i); (iii) a Governmental entity; (iv) an international organisation; (v) a Central bank; or (vi) a financial institution, that is a resident of any country or territory outside India (except the United States of America) under the tax laws of such country or territory or an estate of a de

Information to be maintained and reported.

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