CBDT Notifies Computation of exempt income of specified fund clause (23FF) & Form No 10-II

The Central Board of Direct Taxes (CBDT) has notified a new Rule 2DD prescribing manner to compute such exempt income of specified fund under said sub-clause; this new rule is notified by Income-tax (34th Amendment) Rules, 2021.

The Finance Act, 2021 has inserted a new clause (23FF) to section 10 to provide the capital gain exemption to investors of the resultant fund or specified fund to the extent capital gain income attributable to units held by a non-resident.

The following amendments were made namely: –

• The following Rule 2DD shall be added in Rule 2, which specifies “Definitions”:

“Exempt income of a designated fund must be estimated as income in the type of capital gains arising or received by a specified fund and attributable to units held by non-residents (not being a permanent establishment of a non-resident in India).”

• The following Form No. 10-II has been added to Appendix II, which specifies “Forms, Returns, Statements, Reports, and Other Documents”: –

“Statement of exempt income under section 10 clause (23FF) of the Income Tax Act of 1961“

To Read Notification Download PDF Given Below: