New Delhi, the 9th August, 2021
G.S.R. 545(E).—In exercise of the powers conferred by clause (4D) of section 10 and sub-section (1A) of section 115AD, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct taxes hereby makes the following rules further to amend the Income-tax Rules,1962, namely:─
1. Short title and commencement.-(1)These rules may be called the Income tax Amendment (22nd Amendment), Rules, 2021.
(2) They shall come into force from the date of its publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 21AH, the following rules shall be inserted, namely:—
‘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 recognised stock exchange located in any International Financial Services Centre
and where the consideration for such transaction is paid or payable in convertible foreign exchange;
B = 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);
C1 = 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.
C2= 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
D = 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 securitisation trust which is chargeable
under the head “profits and gains of business or profession”; and
F1 = 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
F2 = 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 securitisation 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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