TMI BlogTax incentives for units located in International Financial Services Centre (IFSC)X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-section(3) or clauses (a) to (d) of sub-section (4) of section 9A of the Act shall not apply (or apply with modification) to an eligible investment fund or its eligible fund manager, if the fund manager is located in an International Financial Services Centre and has commenced operations on or before the 31st day of March, 2024. (ii) It is also proposed to amend clause (4D) of section 10 of the Act so as to provide that the exemption under this clause shall also be available in case of any income accrued or arisen to, or received to the investment division of offshore banking unit to the extent attributable to it and computed in the prescribed manner. (iii) It is also proposed to amend the expression specified fund to include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived by a non-resident, which is on account of transfer of share of a company resident in India by the resultant fund and such shares were transferred from the original fund to the resultant fund in relocation, if capital gains on such shares were not chargeable to tax had that relocation not taken place. Original Fund is proposed to be defined as 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:- (a) the fund is not a person resident in India; (b) the fund is a resident of a country or a specified territory with which an agreement referred to in sub-section (1) of section 90 or sub-section (1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 80LA. (vii) It is also proposed to amend section 47 of the Act to insert new clauses in the said section so as to provide that any transfer, in relocation, of a capital asset by the original fund to the resultant fund shall not be considered as transfer for capital gain tax purpose. It is also proposed to provide another clause to provide that any transfer by a shareholder or unit holder or interest holder, in a relocation, of a capital asset being a share or unit or interest held by him in the original fund in consideration for the share or unit or interest in the resultant fund shall not be treated as transfer for the purpose of capital gains. The definition of Original Fund , Relocation and Resultant Fund shall be as al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he investment division of such banking unit as a Category-III portfolio investor under the Securities and exchange Board of India (Foreign Portfolio investors) Regulations, 2019 made under the Securities And Exchange Board of India Act, 1992 (15 of 1992), calculated in the prescribed manner. The expression investment division of offshore banking unit is also proposed to have the meaning as defined in Para (iii). These amendments will take effect from 1st April, 2022 and will accordingly apply to the assessment year 2022-23 and subsequent assessment years. [Clauses 4,5,15, 17, 21, 23 and 30] Full Text : Budget 2021-22 + FINANCE Bill, 2021 - FAQ - Frequently Asked Questions, TMI Short Notes , Experts comment, opi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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