Determination of income of a specified fund attributable to the investment division of an offshore banking unit. CBDT notifies Income tax (1st Amendment), Rules, 2022.
CBDT has notified two new Income Tax Rules
(i) Rule 21AJA – 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
As per the notification, income of specified fund attributable to the investment division of an offshore banking unit shall be computed in accordance with the following formula, namely:-A+B+C+D
where :
| A = | any income accrued or arisen to, or received by the eligible investment division as a result of transfer of a capital asset referred to in clause (viiab) of section 47 of the Act held by it, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange; |
| B = | any income accrued or arisen to, or received by the eligible investment division as a result of transfer of securities held by it(other than shares in a company resident in India); |
| C = | any income accrued or arisen to, or received by the eligible investment division from securities held by it and issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India; |
| D = | any income accrued or arisen to, or received by the eligible investment division from a securitisation trust which is chargeable under the head “profits and gains of business or profession |
Further, conditions have been prescribed for an investment division of an offshore banking unit.
(ii) 21AJAA. 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
As per the notification, income of the investment division of an offshore banking unit shall be computed in accordance with the following formula:
A+B+C+D+E+F
| A= | income by way of long term capital gain referred to in clause (b) of sub-section (1) of section 115AD, accrued or arisen to, or received by the eligible investment division, as a result of transfer of a security referred to in section 112A of the Act and held by such investment division |
| B= | income by way of long term capital gain referred to in clause (b) of sub-section (1) of section 115AD, accrued or arisen to, or received by the eligible investment division as a result of transfer of a security, other than that referred to in section 112A of the Act, and held by such investment division |
| C= | income by way of short term capital gain referred to in clause (b) of sub-section (1) of section 115AD, accrued or arisen to, or received by the eligible investment division as a result of transfer of security referred to in section 111A of the Act and held by such investment division |
| D= | income by way of short term capital gain referred to in clause (b) of sub-section (1) of section 115AD, accrued or arisen to, or received by the eligible investment division as a result of transfer of a security, other than that referred to in section 111A of the Act, and held by such investment division |
| E= | income from securities referred to in clause (a) of sub-section (1) of section 115AD of the Act, being in the nature of interest referred to in section 194LD of the Act, held by the eligible investment division |
| F= | Income from securities, held by the eligible investment division, as referred to in clause (a) of sub-section (1) of section 115AD of the Act and not included in item E above |
It has been further provided that the eligible investment division shall furnish an annual statement of income, eligible for taxation under sub-section (1B) of section 115AD of the Act, in Form No. 10-IK electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein. Also Form No. 10-IL of verification by Chartered Accountant as also ben notified.
Download CBDT Notification No. 6/2022 Click Here >>
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