This blog post breaks down the recent significant amendment made by the CBDT to Rule 21AIA of the Income Tax Rules. It details the removal of sub-rule (4), which previously imposed additional compliance burdens on "specified funds" like retail schemes and ETFs in the IFSC. The post explains how this change aligns tax laws with IFSCA regulations, effectively eliminating dual regulation. The primary impact is simplified compliance, reduced regulatory overlap, and a more attractive investment environment in India's IFSC, ultimately fostering growth in financial hubs like GIFT City.