9911796707
TMI BlogAmendment of section 10.X X X X Extracts X X X X X X X X Extracts X X X X ..... 2A), for the words "forty per cent.", the words "sixty per cent." shall be substituted; (b) in clause (15), after sub-clause (viii), the following sub-clause shall be inserted, namely:- '(ix) any income by way of interest payable to a non-resident by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after the 1st day of September, 2019. Explanation.-For the purposes of this sub-clause,- (a) "International Financial Services Centre" shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (b) "unit" shall have the meaning assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005(28 of 2005);'; (I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92); (c) "Specified Fund" means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate, -- (i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.); (ii) which is located in any International Financial Services Centre; (iii) of which all the units are held by non-residents other than units held by a sponsor or manager; (d) "sponsor" shall have the meaning assigned to it in clause (w) of sub-regulation (1) of regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch fund or institution or trust or any university or other educational institution or any hospital or other medical institution has not complied with the requirement of any other law for the time being in force, and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality,". (9) Thus, the amended provision will be: Amendment of section 10. 6. In section 10 of the Income-tax Act,-- (I) after clause (4B), the following clause shall be inserted, namely:-- "(4C) any income by way of interest payable to a non-resident, not being a company, or to a foreign company, by any Indian company or business trust in respect of monies borrowed from a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the form of a trust or a company or a limited liability partnership or a body corporate, -- (i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.); (ii) which is located in any International Financial Services Centre; (iii) of which all the units are held by non-residents other than units held by a sponsor or manager; (d) "sponsor" shall have the meaning assigned to it in clause (w) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution or any hospital or other medical institution, as the case may be, as are material for the purpose of achieving its objects and the prescribed authority," shall be substituted; (b) In the fifteenth proviso, for the portion beginning with "(ii) the activities of such fund" and ending with "was notified or approved,", the following shall be substituted, namely:-- "(ii) the activities of such fund or institution or trust or any university or other educational institution or any hospital or other medical institution- (A) are not genuine; or (B) are not being carried out in accordance with all or any of the conditions subject to which it was notified or approved; or (iii) such fund or institution or trust or any university or ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 80CCD, to the extent it does not exceed forty per cent. of the total amount payable to him at the time of such closure or his opting out of the scheme, shall be exempt from tax. It is proposed to amend the said section so as to increase the said tax exempt amount from forty per cent. to sixty per cent. It is proposed to insert sub-clause (ix) in the clause (15) so as to provide that any income by way of interest payable to a nonresident by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after 1st September, 2019 shall be exempted from tax. It is further proposed to insert an Explanation to define the expressions "International Financial Services Centre" and "unit". These ..... X X X X Extracts X X X X X X X X Extracts X X X X
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