TaxTMI 
TaxTMI 
Framing of rules with respect of Fund Manager Regime under section 9A of the Income-tax Act, 1961-Draft notification for inputs from stakeholders and the general public
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....ime in respect of certain offshore funds in context of their fund managers being located in India. It is provided that in case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund. Further, it is provided that an eligible investment fund shall not be said to be resident in India merely because the eligible fund manager undertaking fund management activities on its behalf is located in India subject to the conditions mentioned in sub- section (3) of section 9A, one of which [clause (m) of said sub-section] provides that the remuneration paid by the fund to an eligible fund manager in respect of....
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....y) Deputy Commissioner of Income-tax (OSD) (TPL)-I Tel No : 011-2309 5468 E-mail : [email protected] TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION- 3, SUB-SECTION (ii)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE [CENTRAL BOARD OF DIRECT TAXES] NOTIFICATION New Delhi, ..... th November, 2019 INCOME-TAX G.S.R ........ .(E) .- In exercise of the powers conferred by section 295 read with clause (m) of sub- section (3) of section 9A of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :- 1. (1) These rules may be called the Income-tax ( ..... th Amendment) ....
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....e, whether in the nature of fixed charge or linked to the income or profits derived by the fund from the management activity undertaken by the fund manager, received by such fund in respect of the fund management activity undertaken by the fund manager as reduced by the amount incurred towards operational expenses including distribution expenses, if any: Provided that in case where the amount of remuneration is lower than the amount arrived at under clause (i) or clause (ii), the fund may, at its option, apply to the Member, Central Board of Direct Taxes referred to in sub-rule (2) of rule 10VA seeking approval of the Board under said rule for that lower amount to be the amount for the purposes of clause (m) of sub- section (3) of ....
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....nserted, namely :- "FORM No. 3CEJA [See rule 10V (13)] Report from an accountant to be furnished for purpose of section 9A regarding fulfilment of certain conditions by an eligible investment fund *I/We have examined the accounts and records of ...................................................(name and address of the fund manager with PAN) relating to the fund management activity and other transactions or services rendered by the fund manager to the eligible investment fund/ funds during the previous year ending on 31st March, 1. In*my/our opinion proper information and documents as are prescribed have been kept by the fund manager in respect of fund management activity and other transactions or services rendered by t....
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....estment funds for whom the fund manager has undertaken the fund management activity, with the following details: (a) Name of the offshore fund. (b) Country of residence of the fund (c) Whether the fund manager is an employee of the fund Yes/No (d) Whether the fund manager is a connected person of the Fund Yes/No (e) The amount of profit accruing or arising, during the previous year, to the fund from the activities carried out through the fund manager (f) The amount our of (e) to which the fund manager along with its connected persons is, directly or indirectly, entitled to 12. Particulars of remuneration received in respect of each eligible investment fund and each activity unde....