Rule 21AIA - Other conditions required to be fulfilled by a specified fund referred to in clause (4D) of section 10 of the Act - Income-tax Rules, 1962

1 [21AIA. Other conditions required to be fulfilled by a specified fund referred to in clause (4D) of section 10 of the Act .-(1) For the purposes of the proviso to item (III) of sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 of the Act, the other conditions required to be fulfilled by a specified fund shall be that - (a) the unit holder of the specified fund, other than the sponsor or manager of such fund, who becomes a resident under clause (1) or clause (1A) of section 6 of the Act during any previous year subsequent to the previous year in which such unit or units were issued, shall cease to be a unit holder of such specified fund within a period of three months from the end of the previous year in which he becomes a resident; (b) for the purposes of clause (a), the specified fund shall maintain the following documents in respect of its unit holders,- i. name of the unit holder; ii. tax identification number of the unit holder in the country of residence at the time the units were issued; iii. permanent account number, if available; iv. total number of units held; v. total value of units held; vi. whether unit holder is a sponsor or a manager; vii. the previous year in which the unit holder became resident and; viii. date of exit from specified fund. (2) The specified fund shall certify that it has fulfilled the conditions under sub-rule (1) and furnish information in respect of units held by residents in the annual statement of exempt income in Form No. 10-IG. (3) The income attributable to units held by non-resident (not being the permanent establishment of a nonresident in India) in a specified fund shall not be exempt under clause (4D) of section 10 unless the specified fund complies with sub-rule (2). Explanation.-For the purpose of this rule, specified fund shall have the same meaning as assigned to it in sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 of the Act. ] ************** NOTES:- 1. Inserted vide NOTIFICATION NO. 64/2022 dated 16-06-2022