CBDT vide Notification No. 59/2022 dated 06.06.2022 in S.O. 2602(E) notified the conditions specified in section 9A which shall not be applicable or apply in modified form for Eligible Investment Fund and its manager located in an International Financial Services Centres (IFSC).
The Board has notified that clause (e), clause (f), and clause (g) of section 9A(3) shall not be applicable and the conditions referred to in clause (k) of section 9A(3) and clause (b) of section 9A(4) shall apply with modifications in the case of an eligible investment fund and its eligible fund manager if such fund manager is located in an IFSC.
This notification has modified the clauses (k) and (b) of section 9A(3) and section 9A(4) respectively.
Read the full text of CBDT Notification No. 59/2022 dated 06.06.2022 on Section 9A Conditions that shall not apply to Eligible Investment Funds
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 6th June, 2022
S.O. 2602(E).—In exercise of the powers conferred by sub-section (8A) of section 9A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act), the Central Government hereby specifies that in case of an,—
(a) eligible investment fund referred to in sub-section (8A) of section 9A of the Act, the conditions specified in,—
(i) clause (e), clause (f) and clause (g) of sub-section (3) of section 9A of the Act shall not apply;
(ii) clause (k) of sub-section (3) of section 9A of the Act shall be modified in the following manner, namely:-
“(k) the fund shall not carry on, or participate in, the day to day operations of any person in India and for this purpose the monitoring mechanism to protect the investment in such person including the right to appoint directors or executive director shall not be considered as participation in day to day operations of such person in India;”;
(b) eligible fund manager referred to in sub-section (8A) of section 9A of the Act, the conditions specified in clause (b) of sub-section (4) of section 9A of the Act shall be modified in the following manner, namely:—
“(b) the person is registered as a portfolio manager or an investment advisor in accordance with the International Financial Services Centres Authority (Capital Market Intermediaries) Regulation 2021 as notified under the International Financial Services Centres Authority Act, 2019 (50 of 2019) or such other regulations made under the International Financial Services Centres Authority Act, 2019 (50 of 2019);”.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 59/2022/F. No. 370142/11/2022-TPL]
NEHA SAHAY, Under Secy.
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