Income Tax

Determination of income of specified fund of investment division of offshore banking unit

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 >>

Share

Recent Posts

  • Empanelment

FDCM invites application for empanelment of practising CAs/ Chartered Accountant Firms

Invitation For Empanelment Of Practising Chartered Accountants / Chartered Accountant Firms Forest Development Corporation of Maharashtra Limited (FDCM Limited), Nagpur,…

2 days ago
  • Empanelment

PGRI invites application for CAs for empanelment for Circulation Verification work

Press Registrar General of India (PGRI) invites application for empanelment of Chartered Accountants. The Press Registrar General of India manages…

2 days ago
  • Income Tax

CBDT notifies revised Form for registration as valuer & authorised income tax practitioner

CBDT notifies revised Form No. 169 for making application for registration as a valuer under section 514 and authorised income…

2 days ago
  • Income Tax

Curtailing time to file reply to notice u/s 148A(b) from 30 days prejudiced assessee’s right – HC

Curtailing time to file reply to notice u/s 148A(b) from statutorily available 30 days to 15 days seriously prejudiced assessee’s…

3 days ago
  • Income Tax

For registration u/s 12AB, applicability of proviso to section 2(15) can’t be adjudicated

At the stage of registration u/s 12AB, the CIT(E) not empowered to adjudicate applicability of provisio to section 2(15) of…

4 days ago
  • Income Tax

Flower bed area not included in “built up area” to calculate eligible limit u/s 80IB(10)

Flower bed area could not be included in the definition of “built up area” to calculate eligible limit of 1000…

5 days ago