Income Tax

CBDT notifies two sovereign wealth funds u/s 10(23FE)

CBDT notifies two sovereign wealth funds u/s 10(23FE)

CBDT has notified two sovereign wealth fund under section 10(23FE) of the Income Tax Act 1961 (the Act) as the specified person for the purposes of the clause (vi) of clause (b) of the Explanation 1 to clause (23FE) of section 10 of the Act in respect of the investment made by it in India on or after the date publication of this notification in the Official Gazette but on or before the 31st day of March, 2024:

The 2452991 Ontario Limited Notification No. 111/2021 dated 16th September 2021
The Stretford Investment Pte. Ltd. Notification No. 112/2021 dated 16th September 2021

The exemption is subject to the fulfilment of the following conditions:

(i) the assessee shall file return of income, for all the relevant previous years falling within the period beginning from the date in 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 furnish along with such return a certificate in Form No. 10BBC in respect of compliance to the provisions of clause (23FE) of section 10 of the Act, during the financial year, from an accountant as defined in the Explanation below sub-section (2) of section 288, as per the provisions of clause (vi) of rule 2DB of the Income –tax Rules, 1962;
 
(iii) the assessee shall intimate the details in respect of each investment made by it in India during the quarter within one month from the end of the quarter in Form No. 10BBB, as per the provisions of clause (v) of rule 2DB of the Income-tax Rules, 1962;
 
(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 regulated under the law of the Government of Canada;
 
(vi) the assessee shall be responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be;
 
(vii) not more than ten per cent. of the total value of the assets administered or invested by the assesse are allowed for the purpose other than the purpose listed at clause (vi) provided such assets are wholly owned directly or indirectly by the Government of Canada and such assets vest in the Government of Canada upon dissolution;
 
(viii) the earnings and assets of the assessee should be used only for meeting statutory obligations and defined contributions for participants or beneficiaries of funds or plans referred to in clause (vi) and no portion of the earnings or assets of the pension fund inures any benefit to any other private person; barring any payment made to creditors or depositors for loan or borrowing [as defined in sub-clause (b) of clause (ii) of Explanation2 to clause (23FE) of section 10 of the Act] taken for the purposes other than for making investment in India;
 
(ix) the earning from assets referred to in clause (vii) may be used for purpose other than the purpose listed as in clause (viii) provided that the said earnings are credited either to the account of Government of Canada or any other account designated by such Government so that no portion of the earnings inures any benefit to any private person;
 
(x) the assessee shall not have any loans or borrowings [as defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act], directly or indirectly, for the purposes of making investment in India;
 
(xi) the assessee shall not participate in the day to day operations of investee [as defined in clause (i) of Explanation2 to clause (23FE) of section 10 of the Act] but the 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.
 

Share

Recent Posts

  • Prevention of Corruption Act

CBDT Instruction can not absolve persons to explain source of gold within limits specified – SC

Mere CBDT Instructions cannot absolve individuals of their obligation to explain the source and nature of their gold holdings, even…

2 days ago
  • ICSI

Empanelment of General Observers for ICSI Examinations December 2026. Last date 16.11.2026

Empanelment of General Observers for ICSI Examinations December 2026 ICSI has invited interested members to enroll as General Observers for…

4 days ago
  • Income Tax

ITAT address some important issues relating to deduction u/s 80IA

ITAT answers some important and inter-related issues relating to deduction u/s 80IA In a recent judgment, ITAT has dealt with…

4 days ago
  • Income Tax

Mere carry forward of loss can not be denied for belated return – ITAT

Carry forward of loss can not be denied for belated return, it is only the set off in subsequent year…

2 weeks ago
  • Income Tax

Sales duly recorded in books & VAT returns, can’t be held bogus without cogent adverse material

Where sales are duly recorded in books and VAT returns, to treat it bogus sales, AO must bringing cogent adverse…

2 weeks ago
  • Income Tax

ITAT allows Diwali expenses incurred by assessee as business expenses

Expenses to celebrate Diwali with staff creates a goodwill and, therefore amounts to expenses incurred for the purpose of business…

2 weeks ago