CBDT notifies new provision for Determination of income of a specified fund attributable to the investment division of an offshore bank

The Central Board of Direct taxes (CBDT) notified new provisions for determination of income of a specified fund attributable to the investment division of an offshore bank.

The CBDT in exercise of the powers conferred by clause (4D) of section 10 and sub-section (1B) of section 115AD, read with section 295 of the Income-tax Act, 1961 made the rules further to amend the Income-tax Rules,1962.

The notification inserted Rule 21AJA which pertains to the Computation of exempt income of specified fund, attributable to the investment division of an offshore banking unit, for the purposes of clause (4D) of section 10 of the Act.

It further stated that the eligible investment division shall furnish an annual statement of exempt income in Form No. 10-IK electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein.  

An investment division of an offshore banking unit shall fulfill the various conditions, namely it shall maintain separate accounts for the registered investment division reflecting the true and fair accounts of all transactions relating to the investment division and which shall ensure that direct and indirect expenses relating to the incomes referred to in sub-rule (1) and other incomes are properly recorded, accounted for, and apportioned to these activities; it shall get the accounts, referred to in clause (a), audited by an accountant before the specified date and such accountant shall furnish by that date the report of such audit in Form No. 10-IL electronically under digital signature, which is duly verified in the manner indicated therein; it shall maintain proper documentation in respect of inbound remittance for buying and selling the investments; and the use of inward remittance made to India; it shall maintain bank statement of all accounts of the registered investment division; it shall maintain contract notes relating to purchase and sale of securities by the registered investment division; and it shall maintain a statement of securities issued by the custodian.

The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, shall specify the procedures, formats and standards for ensuring secure capture and transmission of data; and be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to Form No 10-IK and Form No 10-IL.

The notification inserted Rule 21AJAA in respect of determination of income of a specified fund attributable to the investment division of an offshore banking unit under sub-section (1B) of section 115AD of the Act.

Click Here To Read Original Notification

JurisHour
JurisHour
JurisHour is the fastest online portal for Indian legal news.

Leave a Reply

Your email address will not be published. Required fields are marked *