MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 21st November, 2016
INCOME-TAX
S.O. 3498(E).—In exercise of the powers conferred by section 295 read with section 9A 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.
These rules may be called the Income-tax ( 32nd Amendment) Rules, 2016.
2.
In the Income-tax Rules, 1962, in rule 10V,-
(i)
in sub-rule (1), in clause (c), after the words “has been entered into”, the words “or is established or
incorporated or registered in a country or a specified territory notified by the Central Government in this behalf”
shall be inserted with effect from the date of their publication in the Official Gazette;
(ii) after sub-rule (10), the following sub-rules shall be inserted, and shall be deemed to have been inserted with
effect from the 15th day of March, 2016, namely:-
“(11) For the purposes of clause (a) of sub-section (4) of section 9A, a fund manager shall not be
considered to be a connected person of the fund merely for the reason that the fund manager is undertaking fund
management activity of the said fund.
(12)
For the purposes of clause (d) of sub-section (4) of section 9A, any remuneration paid to the fund
manager, by the fund, which is in the nature of fixed charge and not dependent on the income or profits derived
by the fund from the fund management activity undertaken by the fund manager shall not be included in the
profits referred to in the said clause, if the conditions specified in clause (m) of sub-section (3) of section 9A are
satisfied and such fixed charge has been agreed by the fund manager in writing at the beginning of the relevant
fund management activity .”.
[Notification No. 106 /2016/ F. No. 142/15/2015-TPL]
NIRAJ KUMAR, Under Secy. (Tax Policy & Legislation)
Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide
number S.O. 969(E), dated 26th March, 1962 and was last amended by notification number G.S.R.1073(E), dated
16th November, 2016.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054. ALOK
KUMAR
Digitally signed by
ALOK KUMAR
Date: 2016.11.22
14:13:13 +05'30'
