Ministry of Finance 

15.03.2016

Direct Taxation

Income Tax Rules on Fund Manager regime

MANU/CBDT/0021/2016

The Central Board of Direct Taxes released the Income-Tax (5th Amendment) Rules, 2016 providing guidelines for the application of Section 9A of the Income Tax Act, 1961. The Rules introduce Form No. 3CEJ, enabling reporting on arm’s length price on remuneration paid by an investment fund to the fund manager; and Form No. 3CEK provides verification of Annual Statement under Section 9A of the Act.

Section 9A provides for a taxation regime, effective 1 April 2016, to facilitate location of fund managers of offshore funds in India. Under the regime, fund management activity carried-out through an eligible fund manager in India by an eligible investment fund does not constitute business connection in India of the fund and also does not lead to the residence of the fund in India.

Relevant

Fund Manager Regime under Section 9A of the Act MANU/PIBU/0332/2016

Tags : Fund manager offshore income tax

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