TaxTMI 
TaxTMI 
Presence of Eligible Fund Manager in India not to constitute Business Connection in India – Section 9A
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....ted in India. [ Section 9A(2) ] * Eligible Investment Fund * The eligible investment fund 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:- * The fund is not a person resident in India; * The fund should be a resident of a country or a specified territory with which India entered into DTAA as per section 90 or section 90A; * The aggregate participation or investment in the fund, directly [or indirectly (Omitted vide Finance Act, 2025)] , by persons resident in India does not exceed 5% of the corpus of the fund [as on the first day of April and the first day o....
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....orpus of the fund shall not be less than Rs. 100 crore: provided that if the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than Rs. 100 crore at the end of a period of 12 months from the last day of the month of its establishment or incorporation; however, this condition shall not be applicable to a fund which has been wound up in the previous year; * The fund shall not carry on or control and manage, directly or indirectly, any business in India; * The fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities undertaken by t....
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....9A(4) ] * Furnishing Statement or Information by an eligible investment fund * Every eligible investment fund shall, in respect of its activities in a financial year, furnish within 90 days from the end of the financial year, a statement in the form Form No.3CEK, 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. [ Section 9A(5) ] * Penalty for failure to furnish statement or information or document by an eligible investment fund [ Section 271FAB W.e.f. 01.04.2016 ] * If any eligible investment fund which is required to furnish a statem....