Exemption for non-resident derivative income restricted to transactions with IFSC offshore banking units and not through permanent establishment. Rule 21AK limits the exemption for income of non-residents from transfer or distribution of non-deliverable forwards, offshore derivative instruments and over-the-counter derivatives to transactions entered into with an IFSC offshore banking unit holding a valid registration certificate and not entered into through or on behalf of the non-resident's permanent establishment. Concurrently, Rule 114AAB defines 'specified fund' as AIFs registered as Category I or II or funds regulated under IFSC fund management regulations located in an IFSC, and reporting forms are revised to require certification and specified annexure details for claiming deductions under the relevant provision.