Page 31 - DHC Budget Book 2021-22 Final
P. 31
Sec. 10(4D) amended to provide exemption
to a specified fund in respect of income specified therein to the extent such income is attributable to the investment division of an offshore banking unit located in an IFSC and which has commenced operation on or before 31-03-2024;
Sec. 10(4E) inserted to exempt any income accrued or arisen to, or received by a non- resident as a result of transfer of non- deliverable forward contracts entered into with an offshore banking unit of an IFSC which commenced operations on or before 31-03-2024 and fulfils prescribed condition;
Sec. 10(4F) inserted to exempt any income of a non-resident by way of royalty on account of lease of an aircraft in a Previous Year paid by a unit of an IFSC, if the unit is eligible for deduction under Sec. 80LA for that Previous Year and has commenced operation on or before 31-03-2024;
Sec. 10(23FF) inserted to exempt any
capital gains, arising or received by a non- resident, on account of transfer of share of
a resident company by the resultant fund (fund established or incorporated in India, registered and regulated under SEBI and located in an IFSC which fulfils prescribed conditions) and such shares were transferred from the original fund (fund established or incorporated or registered outside India which fulfils prescribed conditions) to the resultant fund in relocation, if capital gains on such shares were not chargeable to tax had that relocation not taken place;
Sec. 47(viiac) inserted to provide that any transfer, in relocation, of a capital asset by the original fund to the resultant fund shall not
be considered as transfer for capital gain tax purpose;
Sec. 47(viiad) inserted to provide that any transfer by a shareholder or unit holder or interest holder, in a relocation, of a capital asset being a share or unit or interest held by him in the original fund in consideration for the share or unit or interest in the resultant fund shall not be considered as transfer for capital gain tax purpose;
Sec. 80LA(1A) amended to provide that deduction under said section is also available to a unit of an IFSC if it is registered under the IFSC Authority Act, 2019 and thereby removing the earlier requirement of obtaining permission under any other relevant law;
Sec. 80LA(2)(d) inserted to provide that
the income arising from transfer of an asset, being an aircraft or aircraft engine, which was leased by a unit of an IFSC to a domestic company engaged in the business of operation of aircraft, before such transfer shall also be eligible for 100% deduction subject to condition that the unit has commenced operation on or before 31-03- 2024;
Sec. 115AD amended to make the provisions of the said section applicable to investment division of an offshore banking unit in the same manner as it applied to specified fund;
Sec. 10(23FE) amended w.e.f. AY 2021-22 to rationalize the provisions relating to Sovereign Wealth Fund (SWF) and Pension Fund (PF) by proposing the following amendments:-
SWF/PF may invest in Category-I and Category-II Alternate Investment Fund (AIF) even if AIF invests upto 50% in non-eligible investments;
SWF/PF may also invest in the following subject to specified conditions being satisfied:
- Investment through domestic holding company which invest in minimum 75% eligible investments;
- Investments in NBFC – Infrastructure debt fund/Infrastructure finance company which lends minimum 90% to eligible entities;
Exemption to SWF/PF to be proportionate in case of less than 100% investments or lending. Further, in case, SWF/ PF has loans or borrowings for making investments in India, such fund shall not be eligible for exemption;
SWF/PF shall not participate in day to day operations of the investee;
PF to be eligible if PF is liable to tax but exemption from taxation for all its income has
Content
Budget Snapshots Basic 29
