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The Central Board of Direct Taxes issues the Income-tax Seventeenth Amendment Rules, 2022 to amend the Income-tax Rules, 1962. The rules set conditions for specified funds regarding unit holders who become residents and specify requirements for tax exemptions and concessional tax rates. A specified fund maintains documents for unit holders and certifies condition fulfillment in the annual statement of exempt income in Form No. 10-IG. A unit holder who becomes a resident ceases to be a unit holder within a period of three months from the end of the previous year. The rules come into force from the date of publication in the Official Gazette.
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[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 7 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 16th June, 2022 G.S.R. 455(E).—In exercise of the powers conferred by the proviso to item (III) of sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 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:─
(2) The specified fund shall certify that it has fulfilled the conditions under sub-rule (1) and furnish information in respect of units held by residents in the annual statement of exempt income in Form No. 10-IG. (3) The income attributable to units held by non-resident (not being the permanent establishment of a non- resident in India) in a specified fund shall not be exempt under clause (4D) of section 10 unless the specified fund complies with sub-rule (2). Explanation.-For the purpose of this rule, “specified fund” shall have the same meaning as assigned to it in sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 of the Act.”; (iii) in rule 21AJ, after sub-rule rule (3), the following sub-rule shall be inserted, namely:- “(3A) The income of a specified fund referred to in clause (a) and clause (b) of sub-section (1) of section 115AD, attributable to the units held by a non-resident (not being the permanent establishment of a non-resident in India),
8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] shall not be eligible for tax rates specified in section 115AD unless it furnishes the annual statement of income eligible for concessional taxation in Form No. 10-IH in accordance with the provision of sub- rule (3).”; (iv) in rule 21AJA, after sub-rule rule (3), the following sub-rule shall be inserted, namely:- “(3A) The income of a specified fund attributable to an eligible investment division shall not be exempt under clause (4D) of section 10 unless it furnishes the annual statement of exempt income in Form No. 10-IK and the report of audit in Form 10-IL in accordance with the provisions of sub-rule (2).”; (v) in rule 21AJAA, after sub-rule (2) , the following sub-rule shall be inserted, namely:- “(2A) The income of an eligible investment division referred to in clause (a) and clause (b) of sub-section (1) of section 115AD shall not be eligible for tax rates specified under section 115AD unless the eligible investment division furnishes an annual statement of income, eligible for taxation under sub-section (1B) of section 115AD of the Act, in Form No. 10-IK in accordance with sub-rule (2).”. 3. In the principal rules, in the APPENDIX for Form No. 10-IG, the following Form shall be substituted, namely: — “Form No.10-IG Statement of exempt income under clause (4D) of section 10 of the Income-tax Act, 1961 [See sub-rule (2) of rule 21AI and sub-rule (2) of rule 21AIA] S. No.
Name of the Specified Fund:
Address of the registered office of the specified fund:
Legal status [company/ trust/ limited liability partnership/ body corporate]:
Permanent account number:
Previous year ending:
(i) Registration number as per the certificate of registration issued by the International Financial Services Centre Authority:
(ii) Date of registration: dd/mm/yyyy 7. Total Income of Specified Fund during Previous Year ( In Rs) Details of Exempt Income under clause (4D) of section 10 S.No. Nature of Income of the Specified Fund Total Income (In Rs.) Income attributable to units held by non-resident (not being a permanent establishment of a non- resident in India) 8. Income accrued or arisen to, or received 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 (A) Total of Column (5) in Part I of Annexure 1 Total of Column (9) in Part I of Annexure 1 9. Income accrued or arisen to, or received as a result of transfer of securities (other than shares in a company resident in India) (B) Total of Column (5) in Part II of Annexure 1 Total of Column (9) in Part II of Annexure 1 10. 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 (D) Total of Column (5) in Part I of Annexure 2 Total of Column (9) in Part I of Annexure 2 11. Income from a securitisation trust which is chargeable under the head "Profits and gains of business or profession" (E) Total of Column (5) in Part II of Annexure 2 Total of Column (9) in Part II of Annexure 2 12. Total Exempt Income under clause (4D) of section 10
[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 9 14. Details of units held by residents under clause (1) or clause (1A) of section 6 of the Act during the previous year
S.No. Name of resident unit holder PAN of resident, if available Tax Identification Number in country of residence during the previous year when unit was issued Total Number of units held Value of units held in Rs. Whether sponsor or manager
Yes/No Whether the resident has become a resident under clause (1) or clause (1A) of section 6 of the Act during this previous year subsequent to the previous year in which such unit or units were issued?
Yes/No If yes date of exit from fund
dd/mm/yyyy Total
Aggregate value of units (Rs. in crore) during the previous year
Aggregate number of units during the previous year
Proportion of units (value) held by residents during the previous year
Proportion of units (number) held by residents during the previous year
Declaration I, __________________________________________________________________(Name in full and in block letters) son/daughter/wife of __________________________________________do hereby declare that: (i) to the best of my knowledge and belief what is stated above and in the Annexure(s), including the documents accompanying such Annexure(s), is correct and complete; (ii) the fund has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (iii) the fund is located in an International Financial Services Centre; (iv) all the units of the specified fund are held by non-residents other than units held by a sponsor or a manger or those who have become resident during this year subsequent to the previous year in which units were issued.
I further declare that during the previous year……..yyyy- yyyy the aggregate value and number of the units, held by resident unit holder or unit holders, as referred to under clause (1) or (1A) of section 6, other than units held by a sponsor or a manger, who were non-resident during the previous year when such unit or units were issued, does not exceed five percent and that they have ceased to be unit holders within a period of three months from the end of the previous year in which they became residents. It is further certified that during the previous year.......yyyy- yyyy the units held by residents are not counted as units held by non-residents, for the purposes of computation of exempt income under sub-rule (1) of rule 21AI and sub-rule (1) and (2) of rule 21AJ.
10 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] I further declare that I am furnishing this statement in my capacity as_____________________________ (designation) and that I am competent to make this declaration and furnish this statement. Place: Date: Yours faithfully, Signature …………….………………. Name………………………………… Designation………………………… Notes:
[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 11 (1) (2) (3) (4) (5) (6) (7) (8) = (6) / (7) (9) = (5) * (8)
Total
Part II. Income from Transfer of securities (other than shares in a company resident in India) (1) (2) (3) (4) (5) (6) (7) (8) = (6) / (7) (9) = (5) * (8)
Total
Annexure 2 S. No. Name of Security Nature of income^
Date of receipt of income (dd/mm/yyyy) Income (In Rs.) Assets under management held by non- resident unit holders (not being the permanent establishment of a non- resident in India) as on the date of receipt of income Total „asset under management‟ as on the date of receipt of income. Ratio Income attributable to units held by non-resident (not being a permanent establishment of a non- resident in India) (1) (2) (3) (4) (5) (6) (7) (8)=(6)/(7) (9) = (5)(8) Part I. Income from Securities attributable to units held 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. (1) (2) (3) (4) (5) (6) (7) (8)=(6)/(7) (9) = (5)(8)
Total
Part II. Income from a securitization trust which is chargeable under the head "Profits and gains of business or profession. (1) (2) (3) (4) (5) (6) (7) (8)=(6)/(7) (9) = (5)*(8)
Total
