Business connection exclusion: Fund management by eligible fund managers does not create taxable business connection for offshore funds. A new section excludes fund management activity carried out by an eligible fund manager on behalf of an eligible investment fund from constituting a business connection in India and from rendering the fund resident under the residence test; it sets detailed eligibility criteria for funds and managers, requires annual prescribed filing confirming compliance, preserves taxation of income that remains taxable regardless of business-connection treatment, and leaves the manager's own total income determination unaffected.