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[भागII—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th May, 2020
INCOME-TAX
G.S.R.315(E).—In exercise of the powers conferred by section 295 read with clause (m) of sub-section (3) of
section 9A 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. (1) These rules may be called the Income-tax (10th Amendment) Rules, 2020.
(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the
Official Gazette.
2.
In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), -
(a) in rule 10V,-
(i)
after sub-rule (10), the following shall be inserted, namely: -
“(11) The provisions of sub-rule (5) to sub-rule (10) shall not apply on or after the 1st day of April, 2019.
(12) the amount of remuneration to be paid by the fund to a fund manager, referred to in clause (m) of sub-section (3) of
section 9A, shall be calculated in the following manner, namely: -
(i) In case where the fund is Category-I foreign portfolio investor referred to in item (i), item (ii) or item (iii), and sub-
item III of item (iv) of clause (a) of regulation 5 of the Securities and Exchange Board of India (Foreign Portfolio
Investors) Regulations, 2019, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), the amount
of remuneration shall be 0.10 per cent of the asset under management.
(ii) In other cases, the amount of remuneration shall be, -
(a) 0.30 per cent. of the asset under management; or
(b) 10 per cent. of profits derived by the fund in excess of the specified hurdle rate from the fund management
activity undertaken by the fund manager, where it is entitled only to remuneration linked to the income or profits
derived by the fund; or
(c) 50 per cent. of the management fee, whether in the nature of fixed charge or linked to the income or profits
derived by the fund from the management activity undertaken by the fund manager, paid by such fund in respect of
the fund management activity undertaken by the fund manager as reduced by the amount incurred towards
operational expenses including distribution expenses, if any:
Provided that the provisions of this sub-clause shall apply only in case the fund is also making payment of
management fee to any other fund manager :
Provided further that in case where the amount of remuneration is lower than the amount arrived at under clause (i) or
clause (ii), the fund may, at its option, apply to the Member, Central Board of Direct Taxes referred to in sub-rule (2) of
rule 10VA seeking approval of the Board under said rule for that lower amount to be the amount of remuneration, and, on
receipt of such application the Board may, after satisfying itself considering the relevant facts, approve such lower
amount to be the amount of remuneration.
Explanation - Fo he p po e of hi e
(a) “a e nde managemen ” mean he ann a ave age of he mon h y ave age of he opening and c o ing ba ance of
the value of such part of the fund which is managed by the fund manager;
(b) “managemen fee” mean he amo n a men ioned in he ce ifica e ob ained f om an acco n an , a defined in clause
(i) of Explanation to rule 11UB, for this purpose;
(c) “ pecified h d e a e” mean a p e-defined threshold beyond which the fund agrees to pay a share of the profits
earned by the fund from the fund management activity undertaken by the fund manager.
(13) The fund manager shall, in addition to any report required to be furnished by it under section 92E, obtain a report
from the accountant in respect of activity undertaken for the fund and furnish such report on or before the specified date
in the Form No. 3CEJA duly verified by such accountant in the manner indicated therein and all the provisions of the Act
shall apply as if it is a report to be furnished under section 92E.”;
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[PART II—SEC. 3(i)]
(ii)
sub-rule (11) and sub-rule (12) shall be renumbered as sub-rule (14) and sub- e (15) e pec ive y ”;
(b) In the principal rules, in Appendix II, -
(i)
after Form No 3CEJ, the following shall be inserted, namely: -
“FORM No. 3CEJA
[See rule 10V (13)]
Report from an accountant to be furnished for purpose of section 9A regarding fulfilment of certain
conditions by an eligible investment fund
*I/We have examined he acco n and eco d of ………………………………………… (name and address
of the fund manager with PAN) relating to the fund management activity and other transactions or services
rendered by the fund manager to the eligible investment fund/ funds during the previous year ending on
31st March,
1.
In*my/our opinion proper information and documents as are prescribed have been kept by the fund
manager in respect of fund management activity and other transactions or services rendered by the fund
manager to the fund/funds so far as appears from *my/our examination of the records of the fund manager.
2.
The particulars required to be furnished for the purpose of section 9A are given in the Annexure to
this Form. In*my/our opinion and to the best of my/our information and according to the explanations given to
*me/us, the particulars given in the Annexure are true and correct.
**Signed: ……………………
Name: ……………………
Add e : ……………………
Membe hip No : ……………………
Place:
Date:
Notes:
1.
*Delete whichever is not applicable.
2.
**This report has to be signed by an accountant as defined in the Explanation below sub-section (2)
of section 288.
ANNEXURE TO FORM No. 3CEJA
Particulars relating to fund management activity required to be furnished for the purposes of section 9A
of the Income-tax Act, 1961
1.
Name of the Fund Manager:
2.
Address
3.
Permanent account number
4.
Nature of business or activities of the fund manager
5.
Status
6.
Residential status
7.
Details of SEBI registration:
(a)
Regulation under which registered
(b)
Registration number and date
(c)
Foreign portfolio investor category, if applicable
8.
Previous year ended
9.
Whether Fund Manager and Fund are related in terms of provision
under section 92B.
Yes/ No
10.
Aggregate value of remuneration received from the eligible fund/ funds
as per books of account
11.
List of eligible investment funds for whom the fund manager has
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undertaken the fund management activity, with the following details:
(a)
Name of the offshore fund.
(b)
Country of residence of the fund
(c)
Whether the fund manager is an employee of the fund
(d)
Whether the fund manager is a connected person of the Fund
(e)
The amount of profit accruing or arising, during the previous
year, to the fund from the activities carried out through the fund
manager
(f)
The amount out of (e) to which the fund manager along with its
connected persons is, directly or indirectly, entitled to
Yes/ No
Yes/ No
12.
Particulars of remuneration received in respect of each eligible
investment fund and each activity undertaken (if such activity is
separately remunerated):
(a)
Name and address of the fund for which the fund management
activity has been undertaken.
(b)
Description of the activity.
(c)
Total amount received or receivable in respect of the activity-
i)
as per books of account;
i)
as computed by the fund manager having regard to the amount
prescribed in this behalf.
13.
Particulars in respect of any other transaction undertaken by the fund
manager with/on behalf of the eligible investment fund:
(a)
Has the fund manager entered into any other transaction or
rendered any other service to the eligible investment fund or on behalf
of the fund, but not specifically referred to above?
(b)
If „ye ‟ p ovide he fo owing de ai in e pec of each f nd
and each transaction or service:
(i)
Name and address of the eligible investment fund with which the
transaction has been entered or to whom services have been
rendered
(ii)
Description of the transaction/ nature of service.
(iii)
Amount paid/ received or payable/ receivable on account of such
transaction/ service-
as per books of account;
a comp ed by he f nd manage having ega d o he a m‟
length price.
(iv)
Method used for determining he a m‟ eng h p ice [See ec ion
92C(1)]
Yes/ No
**Signed: …………………………
Name: …………………………
Add e : …………………………
Place:
Date:
Notes:** This report has to be signed by an accountant as defined in the Explanation below sub-section (2) of
ec ion 288 ”;
(ii) For Form No 3CEK, the following Form shall be substituted, namely:-
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[PART II—SEC. 3(i)]
“FORM No 3CEK
[See rule 10VB]
Statement to be furnished by an eligible investment fund to the Assessing Officer
Sl No.
Heading
Details
Remarks if any
1
Financial Year for which the Statement is being submitted
2
Name of the eligible fund
3
Address of the fund
4
Permanent Account Number (if Allotted)
5
Country of Residence
5A Tax Identification No., if any, of country of residence
6
Accounting year of the Fund
7
Details of Approval if any granted by CBDT
8
Whether during the Financial Year the fund has satisfied all
the conditions specified in section 9A and in case of
Approved Fund whether conditions subject to which
approval was granted, have also been fulfilled. YES/NO
9
If answer to 8 is No then provide details and period of non-
fulfilment and the reasons thereof
10
Whether any person resident in India had any participation
interest directly or indirectly in the fund during the year?
Yes/NO
11 If answer to 10 is Yes provide details of person(s) and
percentage interest
12 Details of any shareholding agreement entered during the
year in respect of any Indian Concern
13 Details of Fund Manager(s) in India rendering services for
or on behalf of the Fund and their SEBI registration
number(s)
14 Whether remuneration paid to the Fund manager (s) is not
less than the amount prescribed and the basis on which it has
been calculated
15 Details of any other Activity carried out by the Fund or on
behalf of the fund in India other than through the fund
manager indicated in 13
16 Amount of profit made by the Fund on its investments
17 Contact details of representative(s) of the Fund
VERIFICATION
I,
……… ...[full name in block letters] .......................................................son/daughter
of……………………………………
ho ding …………………………………(De igna ion) on beha f of he
above men ioned …………………… (Name of F nd) o emn y dec a e ha o he be of my know edge and belief,
the information given in the form is correct and complete and that the other particulars shown therein are truly stated. I
f he dec a e ha I am bmi ing hi fo m in my capaci y a ………………… …… and I am a o compe en o
make this submission and verify it.
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Ve ified oday he ………………………… day of ……………………… …
Place
Signature of Authorised Signatory
Name ………………………… … ”
[Notification No. 29/2020/ F. No. 142/15/2015-TPL]
NEHA SAHAY, Under Secy. (Tax Policy and Legislation Division)
Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide
number S.O. 969 (E) dated 26th March, 1962 and were last amended vide notification number G.S.R. 304 (E)
dated 20.05.2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
