Income Tax

Income tax Amendment (22nd Amendment) Rules 2021

Income tax Amendment (22nd Amendment) Rules 2021. Rule 21AI & 21AJ – Determination and Computation of exempt income of specified fund u/s 10(4D) & 115AD(1A)

CBDT has issued Notification No. 90/2021 dated 10th August 2021 to notify Income tax Amendment (22nd Amendment), Rules, 2021 to insert the following two rules

Rule 21AI

Computation of exempt income of specified fund for the purposes of clause (4D) of section 10.

The Rule provides formula for computation of income attributable to units held by non-resident (not being the permanent establishment of a non-resident in India) in a specified fund for the purpose of clause (4D) of section 10.

Rule21AJ

Determination of income of a specified fund attributable to units held by non-residents under sub-section (1A) of section 115AD.

The Rule provides formula of calculation, for purposes of sub-section (1A) of section 115AD, the income of a specified fund by way of short-term or long-term capital gains, referred to in clause (b) of sub-section (1) of section 115AD, attributable to the units held by non-resident (not being the permanent establishment of a non-resident in India) 

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