Notification No. 17/2020 [F.No.173/10/2014-ITA-I] / SO 1057(E)

Last updated: 18 March 2020

Save Share

Quick Summary

This notification specifies that a non-resident, acting as an Eligible Foreign Investor in line with SEBI's circular dated 4th January 2017, will be considered a Foreign Institutional Investor (FII). This applies to transactions involving securities on a recognised stock exchange within an International Financial Services Centre (IFSC), provided the payment is made or is due in foreign currency.

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 13th March, 2020

S.O. 1057(E).—In exercise of the powers conferred by clause (a) of the Explanation to section 115 AD of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that a nonresident being an Eligible Foreign Investor which operates in accordance with the Securities and Exchange Board of India, circular IMD/HO/FPIC/CIR/P/2017/003 dated 04th January, 2017, shall be deemed as Foreign Institutional Investor (FII) for the purposes of transactions in securities made on a recognised stock exchange located in any International Financial Services Centre (IFSC), where the consideration for such transaction is paid or payable in foreign currency.

Explanation. - for the purpose of this notification, -

(a) “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);

(b) “recognised stock exchange” shall have the same meaning as assigned to it in clause (ii) of Explanation 1 to clause (5) of section 43 of the Income-tax Act, 1961;

(c) the expression “securities” shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956)

[Notification No. 17/2020/ F. No. 173/10/2014-ITA-I]

GULZAR AHMAD WANI, Under Secy

FAQ :

A non-resident Eligible Foreign Investor operating according to the SEBI circular IMD/HO/FPIC/CIR/P/2017/003 dated 4th January 2017 is deemed an FII.

This notification covers transactions in securities made on a recognised stock exchange located in any International Financial Services Centre (IFSC).

The consideration for such transactions must be paid or payable in foreign currency.

An IFSC has the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005.

'Securities' has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.

Notification No : 17/2020
Source : https://www.incometaxindia.gov.in/communications/notification/notification_17_2020.pdf

175 Views Comment Share Income Tax Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments