Fund management activity thtough Fund managers registered under SEBI Mutual Funds Regulations 1996 not to constitute business connection in India
Under Section 9A of the Income Tax Act, 1961, certain activities not to constitute business connection in India. Under the section, in the case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund.
One of the eligibility condition is that the eligible fund manager, in respect of an eligible investment fund, means any person who is engaged in the activity of fund management and inter alia is registered as a fund manager or an investment advisor in accordance with the specified regulations.
Those fund manager registered under Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 and the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 are already covered for the purpose of the section.
Now, the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has also been added to the specified regulations covered under section 9A
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 27/2019
New Delhi, the 20th March, 2019
S.O. 1420(E).—In exercise of the powers conferred by clause (e) of sub-section (9) of section 9A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) as the regulation for the purposes of the said section.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[F.No. 500/182/2018 -FT&TR – V]
RAJAT BANSAL, Jt. Secy. (Foreign Tax and Tax Research) – II----------- Similar Posts: -----------