Amendment to Income-tax Rules: New Investment Limits for Funds in Rule 67 Effective April 1, 2009
The Income-tax (Fifth Amendment) Rules, 2009, effective from April 1, 2009, amend Rule 67 of the Income-tax Rules, 1962, specifying the investment pattern for certain funds. Investments must adhere to specified limits: 55% in government securities and certain mutual funds, 40% in specific debt securities and bank deposits meeting set criteria, 5% in money market instruments, and 15% in shares or equity-linked schemes. Provisions ensure diversification and risk management, including restrictions on mutual fund exposure and requirements for investment-grade ratings. The turnover ratio of securities should not exceed two, and specific definitions are provided for terms like "government securities" and "public financial institutions."
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