CBDT floats the draft notification regarding the renumbering of fund managers
New Delhi, December 5 () The tax department has submitted a draft notification regarding the renewal of Indian-based fund managers who administer funds from foreign investors.
Section 9A of the Income Tax Act of 1961 establishes a special tax regime with respect to certain extraterritorial funds in the context that their fund managers are located in India, an official said.
It is established that in the case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of said fund will not constitute a commercial connection in India of said fund, said the Board Central of Direct Taxes.
The Finance Law (No 2) of 2019, effective as of April 1, 2019, amended section 9A to establish that the remuneration paid by the fund to an eligible fund manager with respect to the fund management activity performed by him on his behalf is not less than the amount calculated in the manner that can be prescribed, he said.
Consequently, the way of calculating the amount should be prescribed, compared to which the remuneration paid to the eligible fund administrator should not be less, he added. The CBDT has requested input from interested parties on the draft notification proposed by the amendments on December 19. DP CS DP MR MR