Specify Public Investment Fund as… — Notification No. 125/2022 / F. No. 500/SWF2/S10(23FE)/FT&TR-II(Pt.1)

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Specify Public Investment Fund as… — Notification No. 125/2022 / F. No. 500/SWF2/S10(23FE)/FT&TR-II(Pt.1) | CBDT notification · Complied AI

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Official source

What changed

The Central Government specifies the Public Investment Fund as the specified person for tax exemption under section 10 of the Income-tax Act, 1961 in respect of investments made in India from the date of publication until the 31st day of March, 2024. The assessee must file a return of income on or before the due date under sub-section (1) of section 139 of the Act. The assessee must get books of account audited and furnish the audit report at least one month prior to the due date. The assessee must furnish a quarterly statement in Form II within one month from the end of each quarter. The assessee must maintain a segmented account of income and expenditure. The assessee must remain wholly owned and controlled by the Government of the Kingdom of Saudi Arabia. Violation of any condition renders the assessee ineligible for the tax exemption.

What you must do

The assessee shall file return of income for all relevant previous years on or before the due date specified under sub-section (1) of section 139 of the Act.
The assessee shall get books of account audited by a specified accountant and furnish the Audit Report at least one month prior to the due date for furnishing the return of income.
The assessee shall furnish a quarterly statement electronically in Form II within one month from the end of each quarter.
The assessee shall maintain a segmented account of income and expenditure in respect of the investment which qualifies for exemption.

Key dates

Effective from: 16 Nov 2022
Date of publication and coming into force: 16 Nov 2022
Investment end date: 31 Mar 2024

Law this touches

Income-tax Act s. 10

Who is affected

The sovereign wealth fund, namely, Public Investment Fund (PAN: AAAJP1787D)

Thresholds

The investment of the assessee shall be held for at least three years as required under sub-clause (ii) of clause (23FE) of section 10 of the Act.

If you do not comply

Violation of any of the conditions stipulates that the assessee becomes ineligible for the tax exemption.

Ask about this notification

Written automatically from the official document. It is not a professional review, so check material decisions against the official record.

Document text

Prepared for reading; wording retained from the source.

Official source

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 16th November, 2022 (INCOME-TAX)

S.O. 5345(E).—In exercise of powers conferred by sub-clause (vi) of clause (b) of Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act), the Central Government hereby specifies the sovereign wealth fund, namely, Public Investment Fund (PAN: AAAJP1787D), (hereinafter referred to as “the assessee”) as the specified person for the purposes of the said clause in respect of the investment made by it in India on or after the date of publication of this notification in the Official Gazette but on or before the 31st day of March, 2024 (hereinafter referred to as “the said investments”) subject to the fulfilment of the following conditions, namely:-

(i) the assessee shall file return of income, for all the relevant previous years falling within the period beginning from the date on which the said investment has been made and ending on the date on which such investment is liquidated, on or before the due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act;
(ii) the assessee shall get its books of account audited for the previous years referred to in clause (i) by an accountant specified in the Explanation below sub-section (2) of section 288 of the Act and furnish the Audit Report in the format annexed as Annexure to this notification at least one month prior to the due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act;
(iii) the assessee shall furnish a quarterly statement within one month from the end of each quarter electronically in Form II as annexed to Circular No. 15 of 2020 dated the 22nd July, 2020 with F. No. 370142/26/2020-TPL issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Tax Policy and Legislation Division), in respect of each investment made by it during the said quarter;
(iv) the assessee shall maintain a segmented account of income and expenditure in respect of such investment which qualifies for exemption under clause (23FE) of section 10 of the Act;
(v) the assessee shall continue to be owned and controlled, directly or indirectly, by the Government of the Kingdom of Saudi Arabia, and at no point of time should any other person have any ownership or control, directly or indirectly, in the assessee;
(vi) the assessee shall continue to be regulated under the laws of the Government of the Kingdom of Saudi Arabia;
(vii) the earnings of the assessee shall be credited either to the account of the Government of the Kingdom of Saudi Arabia or to any other account designated by that Government so that no portion of the earnings inures any benefit to any private person, barring any payment made to creditors or depositors for loan taken or borrowing [as defined in sub-clause (a) of clause (ii) of Explanation2 to clause (23FE) of section 10 of the Act] made for purposes other than for making investment in India;
(viii) the assessee shall not have any loan or borrowing [as defined in sub-clause (a) of clause (ii) of Explanation2 to clause (23FE) of section 10 of the Act], directly or indirectly, for the purposes of making investment in India;
(ix) the assets of the assessee shall vest in the Government of the Kingdom of Saudi Arabia upon dissolution, barring any payment made to creditors or depositors for loan taken or borrowing for purposes other than for making investment in India;
(x) the assessee shall not participate in the day-to-day operations of investee (as defined in clause (i) of Explanation 2 to clause (23FE) of section 10 of the Act), but any monitoring mechanism to protect the investment with the investee, including the right to appoint directors or executive director, shall not be considered as participation in the day-to-day operations of the investee; and
(xi) the investment of the assessee shall be held for at least three years as required under sub-clause (ii) of clause (23FE) of section 10 of the Act.

Violation of any of the conditions as stipulated in clause (23FE) of section 10 of the Act and this notification shall render the assessee ineligible for the tax exemption.
This notification shall come into force from the date of its publication in the Official Gazette.

ANNEXURE Audit Report to be filed by the Sovereign Wealth Fund claiming exemption under section 10 of the Income-tax Act, 1961

Part I

*I/we report that the statutory audit of M/s. ………...........…………………. (Name and address of the assessee with Permanent Account Number or Aadhaar Number), the particulars of which are given in Part II was conducted by *me/ us/ M/s. …………………………………………..………. as per the requirement under the Notification No …../…… dated ……… published in the Official Gazette on ……....

In *my/ our opinion and to the best of my/ our information and according to examination of books of account including other relevant documents and explanations given tome/us, it is certified that the assessee *has/ has not complied with the conditions as laid down under clause (23FE) of section 10 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) and those provided in the said notification specifying the assessee being the Sovereign Wealth Fund (hereinafter referred to as the “SWF”) as specified person for the purposes of claiming exemption under the said clause (23FE) of the Act.

2.1 *The conditions not complied with by the assessee are as under:-

(a) …………………………….…………………………….………………………………
(b) …………………………….…………………………….………………………………

In *my/our opinion and to the best of *my/ our information and according to examination of books of account including other relevant documents and explanations given to *me/us, the particulars given in the Part II are true and correct subject to the following observations/qualifications, if any, namely:-

(a) …………………………….…………………………….………………………………
(b) …………………………….…………………………….………………………………

Part II

Name of the Assessee :
PAN/AADHAAR :
Previous Year :
Total Income of the Assessee during the previous year :
Amount of income eligible for exemption under clause (23FE) of section 10 of the Act (as per details in column 11 of table at item No.6) :
The opening balance (i.e., the closing balance as on the last date of the preceding financial year) of the investment made which is eligible for exemption under clause (23FE) of section 10 of the Act is _____________(in rupees) and details of the investment by the Sovereign Wealth Fund (SWF) during the period are as under:

Sl. No.	Date of investment	Amount of investment	Nature of investment (Note 4)	Nature of income (Note 5)	Amount of income on investment during the year	Details of the entity in which Investment made		Amount of income which is eligible for exemption under clause (23FE) of section 10 of the Act (Attach calculation sheet as per the relevant rules)	Nature of entity (Note 6)	In case nature of entity code is 3/4/5, whether the entity has made minimum investment of 50 or 75 or 90 percent as required in item (c) or (d) or (e) of sub-clause (iii) of clause (23FE) of section 10 of the Act (Attach calculation sheet as per the relevant rules)
Sl. No.	Date of investment	Amount of investment	Nature of investment (Note 4)	Nature of income (Note 5)	Amount of income on investment during the year	Name	PAN		Nature of entity (Note 6)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)
1.
2.
Total

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Specify Public Investment Fund as Specified Person under Section 10(23FE)

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