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10
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 9th August, 2021
G.S.R. 545(E).—In exercise of the powers conferred by clause (4D) of section 10 and sub-section (1A)
of section 115AD, 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 Amendment
(22nd Amendment), Rules, 2021.
(2) They shall come into force from the date of its publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 21AH, the following
rules shall be inserted, namely:—
‘21AI. Computation of exempt income of specified fund for the purposes of clause (4D) of section 10.- (1). For
the purpose of clause (4D) of section 10, income attributable to units held by non-resident (not being the permanent
establishment of a non-resident in India) in a specified fund shall be computed in accordance with the following
formula, namely:-
Income exempt under clause (4D) of section 10= A*C1 + B*C2 +D*FI+E*F2, where
A = any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to
in clause (viiab) of section 47 , 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 a specified fund as a result of transfer of securities (other than
shares in a company resident in India);
C1 = ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-resident unit holders
(not being the permanent establishment of a non-resident in India) to the aggregate of daily total ‘assets under
management’ of the specified fund, from the date of acquisition of the capital asset referred to in clause (viiab) of
section 47 to the date of transfer of such capital asset.
C2= ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-resident unit holders
(not being the permanent establishment of a non-resident in India) to the aggregate of daily total ‘assets under
management’ of the specified fund, from the date of acquisition of the security (other than shares in a company
resident in India) to the date of transfer of such security.
D = any income accrued or arisen to, or received by a specified fund from securities 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;
E = any income accrued or arisen to, or received by a specified fund from a securitisation trust which is chargeable
under the head "profits and gains of business or profession"; and
F1 = ratio of the ‘assets under management’ in the specified fund held by non-resident unit holders (not being the
permanent establishment of a non-resident in India) to the total ‘asset under management’ of the specified fund, as on
the date of receipt of such income from securities 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.
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
11
F2 = ratio of the ‘assets under management’ in the specified fund held by non-resident unit holders (not being the
permanent establishment of a non-resident in India) to the total ‘asset under management’ of the specified fund, as on
the date of receipt of such income from a securitisation trust which is chargeable under the head "profits and gains of
business or profession".
(2) The specified fund shall furnish an annual statement of exempt income in Form No. 10IG electronically under
digital signature on or before the due date, which is duly verified in the manner indicated therein.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems), as the
case may be, shall specify the procedure for filing of the Form No. 10IG and shall also be responsible for evolving and
implementing appropriate security, archival and retrieval policies in relation to the statements so furnished under this
rule.
Explanation.- For the purpose of this rule, the expressions,-
(a)
“assets under management” means the closing balance of the value of assets or investments of the
specified fund as on a particular date;
(b)
"International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of
section 2 of the Special Economic Zones Act, 2005 (28 of 2005)
(c)
“permanent establishment” shall have the same meaning as assigned to it in clause (iiia) of section 92F;
(d) "securities" shall have the meaning as assigned to it in clause (bb) of the Explanation to clause (4D) of
section 10;
(e) “due date” shall have the same meaning as assigned to it in the Explanation 2 to sub-section (1) of
section 139;
(f)
"specified fund" shall have the same meaning as assigned to it in sub-clause (i) of clause (c) of the
Explanation to clause (4D) of section 10; and
(g) “unit” shall have the same meaning assigned to it in clause (f) of Explanation to clause (4D) of section 10.
21AJ.Determination of income of a specified fund attributable to units held by non-residents under sub-section
(1A) of section 115AD.- (1) For the 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) shall
be calculated in accordance with the following formula, namely:—
A = B * C
Where,
A = income attributable to the units held by non-resident (not being the permanent establishment of a non-resident in
India)
B = income arising from transfer of the security
C = ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-resident unit holders
(not being the permanent establishment of a non-resident in India) to the aggregate of daily total ‘assets under
management’ of the specified fund, from the date of acquisition of the security to the date of transfer of such security.
(2) For the purposes of sub-section (1A) of section 115AD, the income of a specified fund by way of income received
in respect of securities, referred to in clause (a) 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) shall be calculated in accordance with
the following formula, namely:—
X = Y * Z
Where,
X = income attributable to the units held by non-resident (not being the permanent establishment of a non-resident in
India)
Y = income received in respect of securities
12
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
Z = ratio of the ‘assets under management’ in the specified fund held by non-resident unit holders (not being the
permanent establishment of a non-resident in India) to the total ‘asset under management’ of the specified fund, as on
the date of receipt of such income.
(3) The specified fund shall furnish an annual statement of income eligible for concessional taxation in Form No 10IH
electronically under digital signature on or before the due date, which is duly verified in the manner indicated therein.
(4) The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems), as the
case may be, shall specify the procedure for filing of the Form No. 10IH and shall also be responsible for evolving and
implementing appropriate security, archival and retrieval policies in relation to the statements so furnished under this
rule.
Explanation.- For the purpose of this rule, the expressions,-
(a)
“assets under management” means the closing balance of the value of assets or investments of the
specified fund as on a particular date;
(b) “permanent establishment” shall have the same meaning as assigned to it in clause (iiia) of section 92F;
(c) "securities" shall have the same meaning as assigned to it in clause (bb) of the Explanation to clause
(4D) of section 10;
(d)
“due date” shall have the same meaning as assigned to it in the Explanation 2 to sub-section (1) of
section 139;
(e) "specified fund" shall have the same meaning as assigned to it in sub-clause (i) of clause (c) of the
Explanation to clause (4D) of section 10; and
(f)
“unit” shall have the same meaning as assigned to it in clause (f) of Explanation to clause (4D) of section
10.’.
2.
In the principal rules, after Form No.10IF, the following Forms shall be inserted, namely :-
“Form No.10IG
[See sub-rule (2) of rule 21AI]
Statement of Exempt income under clause (4D) of section 10 of the Income-tax Act, 1961
S.no.
1. Name of the Specified Fund:
2. Address of the registered office of the specified fund:
3. Legal status [company/ trust/ limited liability partnership/ body
corporate]:
4. Permanent Account Number:
5. Previous year ending:
6. (i)
Registration number as per the certificate of registration
issued by the International Financial Services Centre
Authority:
(ii)
Date of registration:
Dd/mm/yyyy
7. Total Income of Specified Fund during Previous Year
( In Rs)
Details of Exempt Income under clause (4D) of section 10
Nature of Income of the Specified Fund
Total Income
(In Rs)
Income attributable to units
held by non-resident (not
being a permanent
establishment of a non-
resident in India)
8.
Income accrued or arisen to, or received as a result of
transfer of capital asset referred to in clause (viiab) of
section 47, 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(A)
Total of
Column (5) in
Part I of
Annexure 1
Total of Column (9) in Part
I of Annexure 1
9.
Income accrued or arisen to, or received as a result of
Total of
Total of Column (9) in Part
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
13
transfer of securities (other than shares in a company
resident in India)(B)
Column (5) in
Part II of
Annexure 1
II of Annexure 1
10.
Income from securities 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)
Total of
Column (5) in
Part I of
Annexure 2
Total of Column (9) in Part
I of Annexure 2
11.
Income from a securitisation trust which is chargeable
under the head "Profits and gains of business or
profession"(E)
Total of
Column (5) in
Part II of
Annexure 2
Total of Column (9) in Part
II of Annexure 2
12.
Total Exempt Income under clause (4D) of section 10
Declaration
I, __________________________________________________________________ (Name in full and in block
letters) son/daughter/wife of __________________________________________ do hereby declare that:
(i) to the best of my knowledge and belief what is stated above and in the Annexure(s), including the documents
accompanying such Annexure(s), is correct and complete;
(ii) the fund has been granted a certificate of registration as a Category III Alternative Investment Fund and is
regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations,
2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992;
(iii) the fund is located in an International Financial Services Centre;
(iv) all the units of the Specified Fund are held by non-residents other than units held by a sponsor or a manger.
I further declare that I am furnishing such statement in my capacity as_____________________________
(designation) and that I am competent to make this declaration and furnish this statement.
Place:
Date:
Yours faithfully,
Signature …………….……………….
Name…………………………………
Designation…………………………
Notes:
1. Attach a copy of the certificate of registration under Securities and Exchange Board of India (Alternative
Investment Funds) Regulations, 2012.
2. “Assets under management” means the closing balance of the value of assets or investments of the specified
fund as on a particular date.
3. "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of
section 2 of the Special Economic Zones Act, 2005 (28 of 2005).
4. “International Financial Services Centre Authority” means an Authority established under sub-section (1) of
section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019).
5. “Permanent establishment” shall have the meaning assigned to it in clause (iiia) of section 92F.
6. "Securities" shall have the meaning assigned to it in in clause (bb) of the Explanation to clause (4D) of
section 10.
7. "Specified fund" shall have the same meaning assigned to it in sub-clause (i) of clause (c) of the
Explanation to clause (4D) of section 10.
8. “Unit” shall have the same meaning assigned to it clause (f) of Explanation to clause (4D) of section 10.
9. All amount to be mentioned in Indian rupees.
14
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
Annexure 1
S.
No.
Name
of
security
Date of
acquisition
(dd/mm/yyyy)
Date of
transfer
(dd/mm/yyyy)
Capital
Gain
(In Rs)
Aggregate of
daily
‘assets
under
management’
of
the
specified fund
held by non-
resident
unit
holders
(not
being
the
permanent
establishment
of
a
non-
resident
in
India)from the
date
of
acquisition of
the
capital
asset/ security
to the date of
transfer
of
such
capital
asset/ security
Aggregate of
daily total
‘assets under
management’
of the
specified
fund, from the
date of
acquisition of
the capital
asset/security
to the date of
transfer of
such capital
asset/security.
Ratio
Income
attributable to
units held by
non-resident
(not being a
permanent
establishment
of a non-
resident in
India)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8) =
(6) /
(7)
(9) = (5) * (8)
Part I. Income from of transfer of securities referred to in clause (viiab) of section 47, on a recognised stock
exchange located in any International Financial Services Centre and where the consideration for such
1.
Total
Part II. Income from Transfer of securities (other than shares in a company resident in India)
2.
Total
+ add rows depending upon number of securities
Annexure 2
S.
No.
Name
of
Security
Nature
of
income^
Date
of
receipt
of
income
(dd/mm/yyyy)
Income
(In Rs)
Assets under
management
held by non-
resident unit
holders (not
being
the
permanent
establishment
of
a
non-
resident
in
India) as on
the date of
receipt
of
income
Total ‘asset
under
management
as
on
the
date
of
receipt
of
income.
Ratio
Income
attributable
to units held
by non-
resident (not
being a
permanent
establishment
of a non-
resident in
India)
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
15
Part I. Income from Securities 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.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)=(6)/(7)
(9)= (5)*(8)
1.
Total
Part II. Income from a securitisation trust which is chargeable under the head "Profits and gains of business or
profession.
2.
Total
+ add rows as required
^Relevant code to be selected
1. Dividend
2. Interest
3. Other Income. Please specify
Form No.10IH
[See sub-rule (3) of rule 21AJ]
Statement of income of a Specified fund eligible for concessional taxation under section 115AD of the Income-
tax Act, 1961
S. No.
1. Name of the Specified Fund:
2. Address of the registered office of the specified fund:
3. Legal status [company/ trust/ limited liability partnership/ body
corporate]:
4. Permanent Account Number:
5. Previous year ending:
6. (i)
Registration number as per the certificate of registration
issued by the International Financial Services Centre
Authority:
(ii)
Date of registration:
dd/mm/yyyy
7. Total Income of Specified Fund during Previous Year
( In Rs)
Details of income of specified fund attributable to non-residents and eligible for concessional taxation under
section 115AD ( in Rs)
S.
No.
Income/ Loss of the Specified Fund
Amount
Income attributable to units held by
non-resident (not being a permanent
establishment of a non-resident in
India)
8.
Long Term Capital Gain income arising from
transfer of securities as provided in clause (b) of
sub-section (1) of section 115AD and which is
chargeable @10% u/s 112A(A1)
Total of
Column (5) in
Part A1 of
Annexure 1
Total of Column (9) in Part A1 of
Annexure 1
9.
Long Term Capital Gain income arising from
transfer of securities as provided in clause (b) of
sub-section (1) of section 115AD and which is
chargeable @10% (other than section 112A)
(A2)
Total of
Column (5) in
Part A2 of
Annexure 1
Total of Column (9) in Part A2 of
Annexure 1
16
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
10.
Short Term Capital Gain income arising from
transfer of securities as provided in clause (b) of
sub-section (1) of section 115AD and which is
chargeable @15% u/s 111A (A3)
Total of
Column (5) in
Part A3 of
Annexure 1
Total of Column (9) in Part A3 of
Annexure 1
11.
Short Term Capital Gain income arising from
transfer of securities as provided in clause (b) of
sub-section (1) of section 115AD and which is
chargeable @30% (A4)
Total of
Column (5) in
Part A4 of
Annexure 1
Total of Column (9) in Part A4 of
Annexure 1
12.
Income from securities as provided in clause (a)
of sub-section (1) of section 115AD and which is
chargeable @10 % (X1)
Total of
Column (5) in
Part X1 of
Annexure 2
Total of Column (9) in Part X1 of
Annexure 2
13.
Income from securities as provided in clause (a)
of sub-section (1) of section 115AD and which is
chargeable @5% (X2)
Total of
Column (5) in
Part X2 of
Annexure 2
Total of Column (9) in Part X2 of
Annexure 2
Declaration
I, __________________________________________________________________ (Name in full and in block
letters) son/daughter/wife of __________________________________________ do hereby declare that:
(i)
to the best of my knowledge and belief what is stated above and in the Annexure(s), including the
documents accompanying such Annexure(s), is correct and complete;
(ii)
the fund has been granted a certificate of registration as a Category III Alternative Investment Fund
and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund)
Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992;
(iii) the fund is located in an International Financial Services Centre;
(iv) all the units of the Specified Fund are held by non-residents other than units held by a sponsor or a
manger.
I further declare that I am furnishing such statement in my capacity as_____________________________
(designation) and that I am competent to make this declaration and furnish this statement.
Place:
Date:
Yours faithfully,
Signature …………….……………….
Name…………………………………
Designation…………………………
Notes:
1. Attach a copy of the certificate of registration under Securities and Exchange Board of India (Alternative
Investment Funds) Regulations, 2012.
2. “Assets under management” means the closing balance of the value of assets or investments of the specified
fund as on a particular date.
3. "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of
section 2 of the Special Economic Zones Act, 2005 (28 of 2005).
4. “International Financial Services Centre Authority” means an Authority established under sub-section (1) of
section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019).
5. “Permanent establishment” shall have the meaning assigned to it in clause (iiia) of section 92F.
6. "Securities" shall have the meaning assigned to it in in clause (bb) of the Explanation to clause (4D) of
section 10.
[भाग II—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
17
7. "Specified fund" shall have the same meaning assigned to it in sub-clause (i) of clause (c) of the
Explanation to clause (4D) of section 10.
8. “Unit” shall have the same meaning assigned to it clause (f) of Explanation to clause (4D) of section 10.
9. All amount to be mentioned in Indian rupees.
Annexure 1
S.
No.
Name
of
security
Date of
acquisition
(dd/mm/yyyy)
Date of
transfer
(dd/mm/yyyy)
Capital
Gain
(In Rs)
Aggregate of
daily ‘assets
under
management’
of
the
specified
fund held by
non-resident
unit
holders
(not being the
permanent
establishment
of
a
non-
resident
in
India)from
the date of
acquisition of
the
security
to the date of
transfer
of
such security
Aggregate of
daily total
‘assets under
management’
of the
specified
fund, from
the date of
acquisition of
the security
to the date of
transfer of
such security.
Ratio
Income
attributable
to units held
by non-
resident (not
being a
permanent
establishment
of a non-
resident in
India)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
=
(6)/(7)
(9) = (5)*(8)
Part A1. Long Term Capital Gain income arising from transfer of securities as provided in clause (b) of sub-
section (1) of section 115AD and which is chargeable @10% u/s 112A
1.
Total
Part A2. Long Term Capital Gain income arising from transfer of securities as provided in clause (b) of sub-
section (1) of section 115AD and which is chargeable @10% (other than section 112A).
2.
Total
Part A3.Short Term Capital Gain income arising from transfer of securities as provided in clause (b) of sub-
section (1) of section 115AD and which is chargeable @15% u/s 111A.
3.
Total
Part A4.Short Term Capital Gain income arising from transfer of securities as provided in clause (b) of sub-
section (1) of section 115AD and which is chargeable @30%.
4.
Total
+ add rows depending upon number of securities
Annexure 2
S.
No.
Name
of
security
Nature
of
income^
Date
of
receipt
of
income
(dd/mm/yyyy)
Income
(In Rs)
Assets under
management
held by non-
resident unit
Total
asset
under
management
as on the
Ratio
Income
attributable
to units held
by non-
18
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
holders (not
being
the
permanent
establishment
of
a
non-
resident
in
India) as on
the date of
receipt
of
income
date
of
receipt
of
income.
resident (not
being a
permanent
establishment
of a non-
resident in
India)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
=
(6)/(7)
(9) = (5)*(8)
Part X1. Income from Securities which is chargeable @10 % under clause (a) of sub-section (1) of section
115AD
1.
Total
Part X2. Income from Securities which is chargeable @5% (194LD) under clause (a) of sub-section (1) of
section 115AD
2.
Total
+ add rows as required
^Relevant code to be selected
1. Dividend
2. Interest
3. Other Income. Please specify.”.
[Notification No. 90/2021/ F. No. 370142/20/2021-TPL]
NEHA SAHAY, Under Secy. (Tax Policy and Legislation Division)
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. 514 (E) dated the 29th July, 2021.
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.
