Amendment of section 9A.
6. In section 9A of the Income-tax Act, in sub-section (3), with effect from the 1st day of April, 2017,-
(i) in clause (b), after the words “has been entered into”, the words “or is established or incorporated or registered in a country or a specified territory notified by the Central Government in this behalf” shall be inserted;
(ii) in clause (k), the words “or from India” shall be omitted.
Notes on Clauses:
Clause 6 of the Bill seeks to amend section 9A of the Income tax Act relating to certain activities not to constitute business connection in India.
Sub-section (3) of the aforesaid section provides for the conditions to be fulfilled for being an eligible investment fund.
It is proposed to amend clause (b) of the said sub-section so as to provide that the eligible investment fund also means a fund established or incorporated or registered in a country or a specified territory notified by the Central Government in this behalf.
It is further proposed to amend clause (k) of the said sub-section to omit reference to the fund not carrying on or controlling and managing, directly or indirectly, any business from India.
These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017- 2018 and subsequent years.
