Income Tax

Income-tax (11th Amendment) Rules 2021. Conditions to be satisfied u/s 10(23FE) by pension fund

Income-tax (11th Amendment) Rules 2021. Conditions to be satisfied u/s 10(23FE) by pension fund
 
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No.37/2021

New Delhi, the 26th April, 2021
 
INCOME-TAX
 
G.S.R. 291(E).—In exercise of the powers conferred by sub-clause (iii) of clause (c) of Explanation 1to the clause (23FE) of section 10 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
 
1. Short title and commencement. –
 
(1) These rules may be called the Income-tax (11th Amendment) Rules, 2021.
 
(2) They shall come into force from the date of their publication in the Official Gazette.
 
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 2DB,-
 
(i) after clause (ii), the following proviso shall be inserted, namely:−
 
“Provided that the condition in clause (ii) shall be deemed to have been satisfied with respect to assets being administered or invested, if the following conditions are satisfied; namely:-
 
(a) value of such assets is not more than ten per cent. of the total value of the assets administered or invested by such fund;
 
(b) such assets are wholly owned directly or indirectly by the Government of a foreign country; and
 
(c) such assets vests in the Government of such foreign country upon dissolution.”;
 
(ii) after the proviso to clause (iii), the following proviso shall be inserted, namely:-
 
“Provided further that the provisions of clause (iii) shall not apply to earning from the assets referred to in the proviso of clause (ii), if the said earning are credited either to the account of the Government of that foreign country or to any other account designated by such Government so that no portion of the earnings inures any benefit to any private person;”
 
3. In the principal rules, in the APPENDIX II, for Form No. 10BBA the following Form shall be substituted, namely:
 
“FormNo.10BBA
[See sub-rule (1) of rule 2DC]
Application for notification under sub-clause (iv) of clause (c) of Explanation 1 to the clause (23FE) of section 10 of the Income-tax Act,1961
(Pension Fund)
 
…………………………………………………..
…………………………………………………..
 
[F. No.370142/28/2020-TPL]
KAMLESH CHANDRA VARSHNEY, Jt. Secy.
 
Note: The principal rules were published in the Gazette of India Extraordinary, Part III, section 3, sub-section (ii), vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 274 dated the 15th April, 2021
 
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