Amendment of Income-tax Rules, 1962 rules for providing conditions and guidelines for Pension Funds u/s 10(23FE) of the Income-tax Act, 1961- reg

Last updated: 19 August 2020

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The Central Board of Direct Taxes has introduced amendments to the Income-tax Rules, 1962, specifically concerning Pension Funds under Section 10(23FE) of the Income-tax Act, 1961. These new rules, effective from their publication, outline the conditions a pension fund must meet to qualify. Key requirements include being regulated in a foreign country, managing assets for retirement benefits, ensuring earnings benefit only participants, not undertaking commercial activities, and adhering to specific reporting and filing obligations in India.

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 17th August, 2020 INCOME-TAX G.S.R. 508(E).In exercise of the powers conferred by sub-clause (iii) of clause (c) of Explanation to the clause (23FE) of section 10 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. Short title and comme

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FAQ :

These rules amend the Income-tax Rules, 1962, to provide specific conditions and guidelines for Pension Funds seeking benefits under Section 10(23FE) of the Income-tax Act, 1961.

The rules come into force from the date of their publication in the Official Gazette.

A pension fund must be regulated in a foreign country, manage assets for retirement benefits, ensure earnings benefit only participants, not engage in commercial activities, and comply with Indian reporting requirements.

Pension funds must intimate details of investments in India within one month of the quarter's end in Form No. 10BBB and file their income tax return by the due date, along with a certificate in Form No. 10BBC.

No, a pension fund is prohibited from undertaking any commercial activity, whether within or outside India, to comply with these rules.