Govt notifies 121 countries-specified territories us 9A(3) for eligible investment fund management activity

Govt notifies 121 countries-specified territories us 9A(3) for Eligible Investment Fund Management activity not to be regarded business connection in India

Section 9 of the Income Tax Act, 1961 deals with the income which is deemed to accrue or arise in India for taxation purpose. As per sub section (1) of Section 9 iner alia all income accruing or arising (whether directly or indirectly) through or from any business connection in India shall be deemed to accrue or arise in India.

However Section 9A provides few exceptions to the Section 9. As per sub section (1), in 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 be considered as “business connection in India”. Sub section (3)(b) defines “eligible funds” to iner alia mean  a fund which is resident of a country or specified territory.

The Central Government has notified 121 such Countries/Specified Territory as under:

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 78/2017

New Delhi, the 3rd August, 2017

(INCOME-TAX)

S.O. 2456(E).—In exercise of the powers conferred by clause (b) of sub-section (3) of section 9A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the following countries and specified territories, mentioned in column (2) of the Table given below, for the purposes of the said section, namely:—

TABLE

2. This notification shall come into force from the date of its publication in the Official Gazette.

[F. No. 142/15/2015-TPL]

NIRAJ KUMAR, Under Secy.
(Tax Policy and Legislation)