Notification under proviso to section 9A(3) of the Income-tax Act, 1961

Last updated: 02 July 2020

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This notification from the Ministry of Finance provides an exemption for certain investment funds. Specifically, investment funds established by Category-I foreign portfolio investors, registered under SEBI regulations, will not need to meet the conditions outlined in clauses (e), (f), and (g) of sub-section (3) of section 9A of the Income-tax Act, 1961. This change is effective retrospectively from 23rd September 2019.

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 30th June, 2020

(INCOME–TAX)

S.O. 2148(E).—In exercise of the powers conferred by the proviso to sub-section (3) of section 9A of the Income-tax Act, 1961(43 of 1961), the Central Government hereby notifies that the conditions specified in clauses (e), (f) and (g) of the said sub-section shall not apply in case of an investment fund set up by a Category-I foreign portfolio investor registered 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).

2. This notification shall be deemed to have come into force from the 23rd day of September, 2019.

[Notification No. 41/2020/F. No. 142/15/2015-TPL- Part (1)]

NEHA SAHAY, Under Secy. (Tax Policy and Legislation Division)

Explanatory Memorandum : It is hereby certified that no person is being adversely affected by giving retrospective effect to this notification.

FAQ :

This notification concerns an exemption under Section 9A(3) of the Income-tax Act, 1961, for specific investment funds.

The notification covers investment funds set up by a Category-I foreign portfolio investor registered under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.

The conditions specified in clauses (e), (f), and (g) of sub-section (3) of section 9A of the Income-tax Act, 1961, do not apply to these funds.

This notification is deemed to have come into force from the 23rd day of September, 2019.

The notification was issued by the Central Board of Direct Taxes, Ministry of Finance.