TaxTMI 
TaxTMI 
Certain activities not to constitute business connection in India
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....undertaking fund management activities on its behalf, is situated in India. (3) The eligible investment fund referred to in sub-section (1), means a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions, namely:- (a) the fund is not a person resident in India; (b) the fund is a resident of a country or a specified territory with which an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A has been entered into 2[or is established or incorporated or registered in a country or a specified territory notified by the Central Government in this behalf]; (c) the aggregate participation or....
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....e fund, shall be less than fifty per cent.; (h) the fund shall not invest more than twenty per cent. of its corpus in any entity; (i) the fund shall not make any investment in its associate entity; (j) the monthly average of the corpus of the fund shall not be less than one hundred crore rupees: Provided that if the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than one hundred crore rupees 5[at the end of a period of 8[twelve months from the last day of the month of its establishment or incorporation]]; 4[Provided further that nothing contained in this clause shall apply to a fund which has been wound up in the previous year;] (k) the fund shall not carry on or control and ....
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....more than twenty per cent. of the profits accruing or arising to the eligible investment fund from the transactions carried out by the fund through the fund manager. (5) Every eligible investment fund shall, in respect of its activities in a financial year, furnish within ninety days from the end of the financial year, a statement in the prescribed form, to the prescribed income-tax authority containing information relating to the fulfilment of the conditions specified in this section and also provide such other relevant information or documents as may be prescribed. (6) Nothing contained in this section shall apply to exclude any income from the total income of the eligible investment fund, which would have been so included irrespective ....
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....gned to it in clause (4) of section 102; (c) "corpus" means the total amount of funds raised for the purpose of investment by the eligible investment fund as on a particular date; (d) "entity" means any entity in which an eligible investment fund makes an investment; (e) "specified regulations" means the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 or the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, or such other regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), which may be notified by the Central Government under this clause.] ************* NOTES:- 1. Inserted vide Section 6 of the Finance Act, 2015 ....