TaxTMI 
TaxTMI 
CONDITIONS FOR CERTAIN ACTIVITIES NOT TO CONSTITUTE BUSINESS CONNECTION IN INDIA.
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.... been entered into; or (ii) established or incorporated or registered in a country or a specified territory as the Central Government may, by notification, specify; (c) the aggregate participation or investment in the fund, directly by persons resident in India, does not exceed 5% of the corpus of the fund as on the 1st April and the 1st October of the tax year, and- (i) for the purposes of calculation of such aggregate participation or investment in the fund, any contribution up to twenty-five crore rupees made by the eligible fund manager during the first three years of operation of the fund shall not be taken into account; or (ii) where the said aggregate participation or investment in the fund exceeds....
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.... of the tax year,-- (a) a statement in the prescribed form to the prescribed income-tax authority containing information relating to the fulfilment of the conditions specified in this Schedule; and (b) provide such other relevant information or documents, as may be prescribed (4) The provisions of this Schedule shall apply as per such guidelines and in such manner, as the Board may prescribe in this behalf. 2. In this Schedule, the expressions- (a) "connected person" shall have the meaning assigned to it in section 184(5); (b) "corpus" means the total amount of funds raised for the purpose of investment by the eligible investment fund as on a particular date; (c) "specified regulations" mea....
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.... the tax year, subject to the conditions that- (i) for the purposes of calculation of such aggregate participation or investment in the fund, any contribution made by the eligible fund manager during the first three years of operation of the fund, not exceeding twenty-five crore rupees, shall not be taken into account; (ii) where the aforesaid aggregate participation or investment in the fund exceeds 5% on the 1st April or the 1st October of the tax year, the condition mentioned in this clause shall be deemed to be satisfied, if it is satisfied within four months of the 1st April or the 1st October of such tax year; (d) the fund and its activities are subject to applicable investor protection regulations in the co....
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.... the activities undertaken by the eligible fund manager on its behalf; (m) the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the amount calculated in such manner, as may be prescribed. (2) The conditions specified in paragraph (1)(e), (f) and (g) shall not apply, in case of- (a) an investment fund set up by the Government or the Central Bank of a foreign State or a sovereign fund; or (b) such other fund as the Central Government may, by notification, specify in this behalf, subject to conditions, if any. (3) The eligible fund manager, referred to in section 9(12), in respect of an eligible investme....