GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES nbsp New Delhi 27122021 nbsp NOTIFICATION nbsp GSR 883EIn exercise of the powers conferred by clause 23FF of section 10 read with section 295 of the Incometax Act 1961 43 of 1961 the Central Board of Direct taxes hereby makes the following rules further to amend the Incometax Rules 1962 namely9472 nbsp 1 Short title and commencement 1 These rules may be called the Incometax 34th Amendment Rules 2021 2 They shall come into force from the date of publication in the Official Gazette nbsp 2 In the Incometax Rules 1962 hereafter referred to as the principal rules after rule 2DC the following rule shall be inserted namely nbsp 2DD Computation of exempt income of specified fund for the purposes of clause 23FF of section 101 For the purpose of clause 23FF of section 10 income of the nature of capital gains arising or received by a specified fund which is attributable to units held by nonresident not being a permanent establishment of a nonresident in India in such specified fund shall be computed as under nbsp i where the specified fund files Form No 10II in accordance with subrule 2 the Income exempt under clause 23FF of section 10 ABC where nbsp A income of the nature of capital gains arising or received by a specified fund which is on account of transfer of shares of a company resident in India by the specified fund and where such shares were received by the specified fund being resultant fund in relocation from the original fund or from its wholly owned special purpose vehicle and where such capital gains would not be chargeable to tax if the relocation had not taken place nbsp B aggregate of daily assets under management of the specified fund which are held by nonresident unit holders not being the permanent establishment of a nonresident in India from the date of acquisition of the share of a company resident in India by the specified fund to the date of transfer of such share nbsp C aggregate of daily total assets under management of the specified fund from the date of acquisition of the share of a company resident in India by the specified fund to the date of transfer of such share nbsp ii where no Form No10II is filed by the specified fund the exempt income shall be NIL nbsp 2 The specified fund shall furnish an annual statement of exempt income in Form No10II electronically under digital signature on or before the due date which is duly verified in the manner indicated therein nbsp 3 It shall get the annual statement referred to in subrule 2 certified by an accountant before the specified date and such accountant shall furnish by that date the certificate in Form No 10IJ electronically under digital signature which is duly verified in the manner indicated therein nbsp 4 The Principal Director General of Incometax Systems or the Director General of Income tax Systems as the case may be shall specify the procedure for filing of the Form Nos 10II and 10IJ 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 nbsp Explanation For the purposes of this rule the expressions a assets under management means the closing balance of the value of assets or investments of the specified fund as on a particular date b due date shall have the meaning assigned to it in the Explanation 2 below subsection 1 of section 139 c original fund relocation and quotresultant fundquot shall have the meanings respectively assigned to them in the Explanation to clause viiac and clause viiad of section 47 d permanent establishment shall have the meaning assigned to it in clause iiia of section 92F e quotsecuritiesquot shall have the meaning assigned to it in clause bb of the Explanation to clause 4D of section 10 f specified date in relation to the certification of the annual statement in Form 10II means the date one month prior to the due date g quotspecified fundquot shall have the meaning assigned to it in subclause i of clause c of the Explanation to clause 4D of section 10 and h unit shall have the meaning assigned to it clause f of the Explanation to clause 4D of section 10 nbsp 3 In the principal rules in Appendix II after Form 10IH the following Forms shall be inserted namely nbsp Form No 10II Statement of exempt income under clause 23FF of section 10 of the Incometax Act 1961 See subrule 2 of rule 2DD S No nbsp nbsp 1 Name of the specified fund nbsp 2 Permanent Account Number of the specified fund nbsp 3 Registered address of the specified fund nbsp 4 Legal status of the specified fund companytrustlimited liability partnershipbody corporate Drop down 5 Date of establishment incorporation d d m m y y y y 6 Date of commencement of operations d d m m y y y y 7 1 Registration number as per the certificate of registration issued by the International Financial Services Centres Authority nbsp nbsp 2 Date of registration d d m m y y y y 8 Whether all the units of the specified Fund are held by nonresidents other than units held by a sponsor or a manger YesNo 9 Name of the original fund and its wholly owned special purpose vehicle nbsp 10 Registered address of the original fund and its wholly owned special purpose vehicle nbsp 11 Whether the original fund is a person resident in India YesNo 12 Whether the original fund is a resident of a country or a specified territory with which an agreement referred to in subsection 1 of section 90 or subsection 1 of section 90A has been entered into or is established or incorporated or registered in a country or a specified territory as may be notified by the Central Government in this behalf YesNo 13 Whether the original fund and its activities are subject to applicable investor protection regulations in the country or specified territory where it is established or incorporated or is a resident YesNo 14 Whether the original fund fulfils conditions as may be prescribed under clause viiad of section 47 YesNo 15 Country of residence of the original fund nbsp 16 Legal status of the original fund and its wholly owned special purpose vehicle companytrustlimited liability partnershipbody corporate drop down 17 Taxpayers registration number or any unique identification number of the original fund allotted and its wholly owned special purpose vehicle in the country of residence nbsp 18 Details of the shares transferred nbsp nbsp S No Name of the company resident in India whose shares are transferred No of Shares Date of acquisition Cost of acquisition Date of transfer Sale consideration nbsp nbsp A B C D E F 19 Computation of the exempt income under clause 23FF of section 10 of the Incometax Act 1961 Income of the nature of capital gains arising or received by the resultant fund on account of transfer of share of a company resident in India 1 Rs Aggregate value of daily assets under management of the specified fund held by nonresident unit holders not being the permanent establishment of a nonresident in India from the date of acquisition of the share of a company resident in India by the specified fund to the date of transfer of such share 2 nbsp Aggregate value of daily total assets under management of the specified fund from the date of acquisition of the share of a company resident in India by the specified fund to the date of transfer of such share 3 nbsp nbsp Ratio as prescribed under rule 2DD 4 23 nbsp Income attributable to units held by nonresident not being a permanent establishment of a nonresident in India 5 14 nbsp I Name in full and in block letters sondaughterwife of do hereby solemnly declare that to the best of my knowledge and belief what is stated above including the accompanying documents to this form is correct and complete I further declare that I am furnishing such statement in my capacity as designation and that I am competent to furnish this statement and verify it It is also verified that the certification of the accountant in Form 10IL has been filed on nbsp Verified today the day of nbsp Place Signature nbsp Form No 10IJ Certificate to be issued by accountant under clause 23FF of section 10 of the Incometax Act 1961 See subrule 3 of rule 2DD nbsp IWe have examined the books of account if any and other documents including the annual statement in Form No10II showing the particulars of income of the nature of capital gains arising or received by name of the specified fund on account of transfer of share of a company resident in India by the specified fund to the extent attributable to units held by nonresident not being a permanent establishment of a nonresident in India which is exempt under clause 23FF of section 10 of the Act and the total income exempt under the said clause for the previous year ending nbsp 2 IWe declare that the above particulars are true and correct to the best of myour knowledge and belief nbsp Signature with name of the accountant Place Date nbsp Instructions 1 Where the specified fund has floated multiple schemes the specified fund shall separately furnish the annual statement of exempt income in Form No 10II for each scheme and 2 All amounts to be mentioned in Indian rupees nbsp Notification No 1382021F No 370142582021TPLPartII nbsp UMME FARDINA ADIL Under Secy nbsp Note The principal rules were published in the Gazette of India Extraordinary PartII Section3 Subsection ii vide notification number SO 969E dated the 26th March 1962 and were last amended vide notification number GSR 851E dated 10th December 2021