Income tax (1st Amendment), Rules, 2022 - New Rule 21AJA. Computation of exempt income of specified fund, attributable to the investment division of an offshore banking unit, for the purposes of clause (4D) of section 10 of the Act - Determination of income of a specified fund attributable to the investment division of an offshore banking unit under sub-section (1B) of section 115AD of the Act. - 06/2022 - Income Tax

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).