Computation of exempt income clarified for offshore banking unit investment divisions; electronic annual filing and audited accounts required. Rules prescribe computation of income of a specified fund attributable to an offshore banking unit's investment division for exemption under clause (4D) and taxation under sub-section (1B) of section 115AD by aggregating defined categories of capital gains, securities income and securitisation trust receipts. Expenditure incurred to earn those items is expressly disallowed as a deduction from other activities. The eligible investment division must maintain separate audited accounts, specified documentation and electronically file Form No. 10-IK and auditor verification in Form No. 10-IL within prescribed timelines, with systems standards set by the Director-General of Income-tax (Systems).