Rule 2DB - Other conditions to be satisfied by the pension fund - Income-tax Rules, 1962

1 [ 2DB. Other conditions to be satisfied by the pension fund. - For the purposes of clause (23FE) of section 10, the pension fund shall be required to satisfy the following other conditions, namely: - (i) it is regulated under the law of a foreign country including the laws made by any of its political constituents being a province, state or local body, by whatever name called, under which it is created or established, as the case may be; (ii) it is responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be; 5 [ Provided that the condition in clause (ii) shall be deemed to have been satisfied with respect to assets being administered or invested, if the following conditions are satisfied; namely:- (a) value of such assets is not more than ten per cent. of the total value of the assets administered or invested by such fund; (b) such assets are wholly owned directly or indirectly by the Government of a foreign country; and (c) such assets vests in the Government of such foreign country upon dissolution. ] (iii) the earnings and assets of the pension fund are used only for meeting statutory obligations and defined contributions for participants or beneficiaries of funds or plans referred to in clause (ii) and no portion of the earnings or assets of the pension fund inures any benefit to any other private person; 2 [ Provided that the provisions of clause (iii) shall not apply to any payment made to creditors or depositors for loan taken or borrowing for the purposes other than for making investment in India; ] 6 [ Provided further that the provisions of clause (iii) shall not apply to earning from the assets referred to in the proviso of clause (ii), if the said earning are credited either to the account of the Government of that foreign country or to any other account designated by such Government so that no portion of the earnings inures any benefit to any private person; ] 3 [ **** ] (v) it shall intimate the details in respect of each investment made by it in India during the quarter within one month from the end of the quarter in Form No. 10BBB; (vi) it shall file return of income on or before the due date specified under sub-section (1) of section 139 and furnish along with such return a certificate in Form No. 10BBC in respect of compliance to the provisions of clause (23FE) of section 10, during the financial year, from an accountant as defined in the Explanation below sub-section (2) of section 288. ] 4 [ Explanation: For the purposes of this rule, loan and borrowing shall have the same meaning as assigned to it in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10. ] ************* NOTES:- 1. Inserted vide NOTIFICATION NO. 67/2020 dated 17-08-2020 2. Inserted vide NOTIFICATION NO. 32/2021 dated 15-04-2021 3. Omitted vide NOTIFICATION NO. 32/2021 dated 15-04-2021 before it was read as (iv) it does not undertake any commercial activity whether within or outside India; 4. Inserted vide NOTIFICATION NO. 32/2021 dated 15-04-2021 5. Inserted vide Notification No. G.S.R. 291(E) dated 26-04-2021 6. Inserted vide Notification No. G.S.R. 291(E) dated 26-04-2021