CBDT- Inserts two new rules after 21AH and Two new Forms after Form 10.IF

Last Updated On: Aug. 12, 2021, 10:42 p.m.
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CBDT-  INSERTS TWO NEW RULE AFTER 21AH AND TWO NEW FORMS AFTER FORM NO.10IF 

The CBDT has notified a new set of rules to amend the existing Income-tax Rules, 1962 which shall come into force as on the date of its publication in the Official Gazette. The aim of this amendment is to insert two new rules after rule 21AH and two new forms after Form No.10IF, namely: - 21AI.

Computation of exempt income of specified fund for the purposes of clause (4D) of section 10 Form No. 10IG. Statement of Exempt income under clause (4D) of section 10 of the Income-tax Act, 1961 - 21AJ. Determination of income of a specified fund attributable to units held by non-residents under sub-section (1A) of section 115AD

 

Newly inserted rules  21AI.

Computation of exempt income of specified fund for the purposes of clause (4D) of section 10  (1) For the purpose of clause (4D) of section 10, income attributable to units held by non-resident (not being the permanent establishment of a non-resident in India) in a specified fund shall be computed in accordance with the following formula, namely: Income exempt under clause (4D) of section 10= A*C1 + B*C2 +D*FI+E*F2, where A = any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause (viiab) of section 47, on a recognized stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange;

 

any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause (viiab) of section 47, on a recognized stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange;

any income accrued or arisen to, or received by a specified fund as a result of transfer of securities (other than shares in a company resident in India);

ratio of the aggregate of daily 'assets under management' of the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the aggregate of daily total 'assets under management' of the specified fund, from the date of acquisition of the capital asset referred to in clause (viiab) of section 47 to the date of transfer of such capital asset.

ratio of the aggregate of daily 'assets under management' of the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the aggregate of daily total 'assets under management' of the specified fund, from the date of acquisition of the security (other than shares in a company resident in India) to the date of transfer of such security.

any income accrued or arisen to, or received by a specified fund from securities issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India; E = any income accrued or arisen to, or received by a specified fund from a securitization trust which is chargeable under the head 'profits and gains of business or profession'; and

ratio of the 'assets under management' in the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the total 'asset under management' of the specified fund, as on the date of receipt of such income from securities issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India.

ratio of the 'assets under management' in the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the total 'asset under management' of the specified fund, as on the date of receipt of such income from a securitization trust which is chargeable under the head 'profits and gains of business or profession'.

(2) The specified fund shall furnish an annual statement of exempt income in Form No. 10IG electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein.

 

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems), as the case may be, shall specify the procedure for filing of the Form No. 10IG and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the statements so furnished under this rule.



 

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