TaxTMI 
TaxTMI 
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.
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....962 (hereinafter referred to as the principal rules), after rule 21AJ, the following rules shall be inserted, namely:- '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- (1) For the purposes of clause (4D) of section 10 of the Act, income of specified fund attributable to the investment division of an offshore banking unit shall be computed in accordance with the following formula, namely:- A+B+C+D where ,− A = any income accrued or arisen to, or received by the eligible investment division as a result of transfer of a capital asset referred to in clause (viiab) of section 47 of the Act held by it, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange; B= any income accrued or arisen to, or received by the eligible investment division as a result of transfer of securities held by it (other than shares in a company resident in India); C= any income accrued or arise....
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.... the registered investment division; and (f) it shall maintain a statement of securities issued by the custodian. (4) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, shall,- (i) specify the procedures, formats and standards for ensuring secure capture and transmission of data; and (ii) be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to Form No 10-IK and Form No 10-IL. Explanation. - For the purpose of this rule, the expressions,- (a) "accountant" shall have the same meaning as assigned to it in the Explanation below subsection (2) of section 288 of the Act; (b) "due date" shall have the same meaning as assigned to it in the Explanation 2 to sub-section (1) of section 139 of the Act; (c) "eligible investment division" shall mean a registered investment division which fulfills the conditions as prescribed under item II of sub-clause (ii) of clause (c) of the Explanation to clause (4D) of section 10 of the Act; (d) "investment division of an offshore banking unit" shall ha....
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....ble investment division as a result of transfer of a security, other than that referred to in section 111A of the Act, and held by such investment division; E= income from securities referred to in clause (a) of sub-section (1) of section 115AD of the Act, being in the nature of interest referred to in section 194LD of the Act, held by the eligible investment division; F= income from securities, held by the eligible investment division, as referred to in clause (a) of subsection (1) of section 115AD of the Act and not included in item E above. Explanation: Any expenditure incurred for the purposes of making or earning an income referred to in items A or B or C or D or E or F shall not be allowed as a deduction from income from any other activity or source, irrespective of the fact that such expenditure has been not allowed as a deduction against income referred to in items A or B or C or D or E or F, as the case may be. (2) The eligible investment division shall furnish an annual statement of income, eligible for taxation under sub-section (1B) of section 115AD of the Act, in Form No. 10-IK electronically under digital signature on or before the ....
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....her conditions as mandated by sub-rule (3) of Rule 21AJA are fulfilled Yes/No 10. Calculation of income exempt under clause (4D) of section 10 of the Act Income accrued or arisen or received by the eligible investment division from transfer of capital asset referred to in clause (viiab) of section 47 of the Act held by it, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange; [A] (In Rs) Income accrued or arisen or received by the eligible investment division as a result of transfer of securities held by it (other than shares in a company resident in India);[B] (In Rs) Income accrued or arisen to, or received by the eligible investment division from securities held by it and issued by a non-resident (not being a permanent establishment of a nonresident in India) and where such income otherwise does not accrue or arise in India;)[C] (In Rs) Income accrued or arisen to, or received by the eligible investment division from a securitisation trust which is chargeabl....
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....orrect and complete; I further declare that I am furnishing such statement in my capacity as ____________________ (designation) and that I am competent to make this declaration and furnish this statement. Place: Date: Yours faithfully, Signature ................................... Name....................................... Designation.............................. FORM NO. 10-IL [see rule 21AJA] Verification by an Accountant under sub-rule (3) of rule 21AJA Verification I/We __________________________________________ have examined the books of account and other documents showing the particulars of income accrued or arisen to, or received by the eligible investment division of __________________________ (name of the offshore banking unit which is exempt under clause (4D) of section 10 and/or is eligible for concessional rates under sub-section (1B) of section 115AD of the Income-tax Act, 1961. 2. Further, I/ We do hereby affirm that the eligible investment division of ......................(name of offshore banking unit) has fulfilled the following conditions: S.no. Condition Whether fulfilled or not fulfilled (i) It has maintai....