## Policy Analysis Report: Notification No. 862022/F. No. 500/1/S/10/23FE/FTTR-II
**1. Executive Summary:**
This report analyzes Notification No. 862022/F. No. 500/1/S/10/23FE/FTTR-II, issued by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, on July 21, 2022. This notification specifies CPPIB Credit Investments VI Inc. as a "specified person" under Section 10(23FE) of the Income-tax Act, 1961, enabling it to potentially receive tax exemptions on eligible investments made in India, subject to fulfilling specific conditions. The key finding is that this notification outlines stringent compliance requirements for the specified pension fund to maintain eligibility for the tax exemption.
**2. Introduction:**
This report aims to provide a comprehensive overview and analysis of Notification No. 862022/F. No. 500/1/S/10/23FE/FTTR-II, based solely on the text of the notification itself. It outlines the policy's core objective, key provisions, affected stakeholders, implementation aspects, and potential impact.
**3. Policy Overview:**
This is a new policy notification under the existing legal framework of Section 10(23FE) of the Income-tax Act, 1961.
* **Core Objective:** The notification specifies CPPIB Credit Investments VI Inc. as a "specified person" for the purpose of Section 10(23FE) of the Income-tax Act, 1961, allowing its eligible investments in India to potentially qualify for tax exemption, subject to fulfilling the prescribed conditions.
**4. Background and Rationale:**
This notification addresses the implementation of Section 10(23FE) of the Income-tax Act, 1961, which provides a framework for granting tax exemptions to specific foreign investments in India. The notification specifies a specific pension fund, CPPIB Credit Investments VI Inc., enabling it to potentially benefit from this provision, provided it meets all stipulated conditions. This specification is likely intended to attract foreign investment into India from eligible entities.
**5. Key Provisions:**
This notification outlines specific requirements for CPPIB Credit Investments VI Inc. to maintain its status as a “specified person” and thus remain eligible for tax exemptions under Section 10(23FE):
* **Eligibility:** The specified person is CPPIB Credit Investments VI Inc. (PAN: AAGCC5549K).
* **Investment Period:** The eligible investment must be made on or after the date of publication of the notification (July 21, 2022) but on or before March 31, 2024.
* **Compliance Conditions:** The assessee (CPPIB Credit Investments VI Inc.) must adhere to the following conditions:
* File income tax returns for all relevant years from the investment date to liquidation, by the due date under Section 139(1) of the Act.
* Furnish Form No. 10BBC (certificate of compliance with Section 10(23FE)) annually, certified by an accountant as defined in Section 288(2) of the Act, as per Rule 2DB(vi) of the Income-tax Rules, 1962.
* Intimate investment details quarterly in Form No. 10BBB, as per Rule 2DB(v) of the Income-tax Rules, 1962, within one month from the end of the quarter.
* Maintain a segmented account of income and expenditure related to the qualifying investment.
* Continue to be regulated under the law of the Government of Canada.
* Be responsible for administering or investing assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans.
* The earnings and assets of the assessee should be used only for meeting statutory obligations and defined contributions for participants or beneficiaries of funds or plans and no portion of the earnings or assets of the pension fund inures any benefit to any other private person; barring any payment made to creditors or depositors for loan or borrowing.
* The assessee shall not have any loans or borrowings for the purposes of making investment in India.
* The assessee shall not participate in the day to day operations of investee but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in the day to day operations of the investee.
* **Violation:** Non-compliance with any of the conditions stipulated in Section 10(23FE) of the Act and this notification will render the assessee ineligible for the tax exemption.
* **Effective Date:** The notification comes into force from the date of its publication in the Official Gazette (July 21, 2022).
**6. Target Audience and Stakeholders:**
The primary target audience is CPPIB Credit Investments VI Inc. Other stakeholders include:
* The Central Board of Direct Taxes (CBDT), responsible for administering the notification.
* Accountants and auditors responsible for certifying compliance.
* The investee companies in India receiving investments from CPPIB Credit Investments VI Inc.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Central Board of Direct Taxes (CBDT) is responsible for overseeing and administering the implementation of this notification.
* **Timelines:**
* Investments must be made between July 21, 2022, and March 31, 2024.
* Income tax returns must be filed by the due date specified in Section 139(1) of the Act.
* Form No. 10BBC must be furnished annually with the income tax return.
* Form No. 10BBB must be submitted quarterly within one month from the end of the quarter.
* **Procedures:** The notification refers to specific forms (10BBC and 10BBB) and rules (2DB of the Income-tax Rules, 1962), indicating established procedures for compliance.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome is to facilitate and attract foreign investment from CPPIB Credit Investments VI Inc. into India by clarifying the conditions for tax exemption under Section 10(23FE). The strict compliance requirements aim to ensure transparency and accountability in the investment process.
**9. Conclusion:**
Notification No. 862022/F. No. 500/1/S/10/23FE/FTTR-II is a significant policy document for CPPIB Credit Investments VI Inc. as it specifies the conditions required for the pension fund to avail tax exemptions on its eligible investments in India under Section 10(23FE) of the Income-tax Act, 1961. The notification underscores the importance of adhering to the stipulated conditions to maintain eligibility for the tax benefit. This policy will facilitate foreign investment and boost economic growth by incentivizing eligible entities to invest in India.
Key Entities Referenced
NEW DELHI: Capital of India, place of publication of the gazette notification.
ASHADHA: Month in the Hindu calendar, mentioned in the context of the date.
MINISTRY OF FINANCE: The ministry responsible for the notification.
Department of Revenue: Department under the Ministry of Finance.
CENTRAL BOARD OF DIRECT TAXES: Authority issuing the notification.
Incometax Act, 1961: The primary legislation being referenced (43 of 1961).
Central Government: The government authorized to specify pension funds for the purpose of section 10(23FE) of the Income-tax Act, 1961.
CPPIB Credit Investments VI Inc.: The specified pension fund mentioned in the notification.
Government of Canada: The country whose law regulates the assessee, CPPIB Credit Investments VI Inc.
Incometax Rules, 1962: Rules related to the Incometax Act, 1961.
Official Gazette: The official publication for government notifications.
Government of India Press, Ring Road, Mayapuri, New Delhi: The location of the printing press.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-21072022-237426
xxxGIDHxxx
CG-DL-E-21072022-237426
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3163] नई दिल्ली, बृहस्ट्प जतिार, िुलाई 21, 2022/आर्षाढ़ 30, 1944
No. 3163] NEW DELHI, THURSDAY, JULY 21, 2022/ASHADHA 30, 1944
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 21 िुलाई, 2022
(आय-कर)
का.आ. 3324(अ).—केंद्रीय सरकार, आय-कर अजधजनयम, 1961 (1961 का 43) (जिस े इसमें इसके पश्चात
अजधजनयम कहा गया ह)ै की धारा 10 के खंड (23चड.) के स्ट्पष्टीकरण 1 के खंड (ग) के उप खंड (iv) द्वारा प्रित्त िजियों का
प्रयोग करत े हुए, पेंिन जनजध अर्ाडत,् सीपीपीआईबी क्रेजडट इन्िेस्ट्टमेंट्स VI इंक (पनै : एएिीसीसी5549के), (जिस े इसम ें
इसके पश्चात जनधाडररती कहा गया ह)ै को, उि खडं के प्रयोिनों के जलए रािपत्र में इस अजधसूचना के प्रकािन की तारीख
को या उसके पश्चात ककंत ु 31 माचड, 2024 को या उससे पूि ड भारत म ें उसके द्वारा दकए गए पात्र जिजनधान (जिसे इसमें
इसके पश्चात उि जिजनधान कहा गया ह)ै के सम्बंध म,ें जनम्नजलजखत ितों को पूरा करन े के अधीन रहते हुए, जिजनर्िष्टड
व्यजि के रूप म ेंजिजनर्िष्टड करती ह,ै अर्ाडत:् -
(i) जनधाडररती, उस तारीख से प्रारम्भ होने िाली अिजध, जिसमें उि जिजनधान दकया गया ह ैऔर उस तारीख को,
जिसको ऐसा जिजनधान का पररसमापन दकया गया ह,ै समाप्त होने िाली अिजध के अतं गतड आन े िाले सभी
सुसंगत पूिडिती िर्षों के जलए अजधजनयम की धारा 139 की उप धारा (1) के अधीन आय की जििरणी प्रस्ट्तुत
करने की जिजनर्िष्टड िेय तारीख को या उससे पूिड आय की जििरणी फाइल करेगा;
(ii) जनधाडररती ऐसी जििरणी के सार् जित्त िर्षड के िौरान अजधजनयम की धारा 10 के खंड (23चड.) के उपबंधों की
अनुपालन के संबंध म ें आय-कर जनयम, 1962 के जनयम 2घख के खंड (vi) के उपबंधों के अनसु ार अजधजनयम
की धारा 288 की उपधारा (2) के नीच े स्ट्पष्टीकरण म ें यर्ा पररभाजर्षत दकसी लेखापाल के प्ररूप संख्या
10खखग में एक प्रमाण पत्र प्रस्ट्तुत करेगा;
4882 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(iii) जनधाडररती भारत म ें जतमाही के िौरान उसके द्वारा दकए गए प्रत्येक जिजनधान के संबंध में ब्यौरों की सूचना
जतमाही के िौरान जतमाही के अंत से एक मास के भीतर आय-कर जनयम, 1962 के जनयम 2घख के खंड (V) के
उपबंधों के अनुसार प्ररूप स.ं 10खखख में िेगा;
(iv) जनधाडररती, ऐसे जिजनधानों के संबंध में, िो अजधजनयम की धारा 10 के खंड (23चड.) के अधीन छूट के जलए
अर्हतड ह,ैं के संबंध में आय और व्यय का खंडिार लेखा बनाए रखेगा;
(v) जनधाडररती कनाडा सरकार की जिजध के अधीन जिजनयजमत होता रहगे ा;
(vi) जनधाडररती, यर्ाजस्ट्र्जत, ऐसी जनजधयों या योिनाओं के भागीिारों या जहताजधकाररयों के जलए सेिाजनिृजत्त,
सामाजिक सुरक्षा, रोिगार, दिव्यांग्ता, मरणोत्तर प्रसुजिधाएं या कोई समरूप प्रजतकर का उपबंध करन े के जलए
स्ट्र्ाजपत एक या अजधक जनजधयों या योिनाओं की कानूनी बाध्यताओं और पररभाजर्षत अजभिायों को पूरा करन े
के जलए आजस्ट्तयों के प्रिासन या जिजनधान के जलए उत्तरिायी होगा;
(vii) जनधाडररती के उपािडनों और आजस्ट्तयों का उपयोग केिल कानूनी बाध्यताओं को और खंड (vi) में जनर्िष्टड
जनजधयों या योिनाओं के सहभाजगयों या फायिाग्राजहयों के जलए पररभाजर्षत अजभिायों को पूरा करन े के जलए
दकया िाए तर्ा पेंिन जनजध के उपािडनों या आजस्ट्तयों का कोई भाग दकसी अन्य प्राइिेट व्यजि के दकसी
फायिा को भारत म ें जिजनधान करन े के प्रयोिन से जभन्न प्रयोिनों हते ु जलए गए ऋण या उधार [अजधनयम की
धारा 10 के खंड (23चड.) के स्ट्पष्टीकरण 2 के खंड (ii) के उपखंड (ख) म ें यर्ापररभाजर्षत] के जलए लेनिारों या
जनक्षेपकताडओं को दकए गए दकसी संिाय को िर्िडत करत े हुए लाग ूनहीं होता ह;ै
(viii) जनधाडररती के पास भारत में जिजनधान करने के प्रयोिनों के जलए, प्रत्यक्षत: या अप्रत्यक्षतः कोई ऋण या उधार
[अजधनयम की धारा 10 के खंड (23चड.) के स्ट्पष्टीकरण-2 के खंड (ii) के उपखडं (ख) म ें यर्ापररभाजर्षत] नहीं
होगा; और
(ix) जनधाडररती जिजनधान प्राप्तकता ड [अजधनयम की धारा 10 के खंड (23चड.) के स्ट्पष्टीकरण-2 के खंड (i) म ें
यर्ापररभाजर्षत] के दिन प्रजतदिन की संदक्रयाओं म ें भाग नहीं लेगा परं तु जिजनधान प्राप्तकताड के पास जिजनधान
की संरक्षा करन े के जलए मॉनीटरी तंत्र को, जिसमें जनिेिकों या कायडपालक जनिेिक को जनयुि करने के
अजधकार सजम्मजलत ह,ै जिजनधान प्राप्तकताड के दिन प्रजतदिन की संदक्रयाओं में भाग लेना नहीं समझा िाएगा।
2. अजधजनयम की धारा 10के खडं (23चड.) और इस अजधसूचना में यर्ा उजल्लजखत ितों में से दकसी भी ितड का
उल्लघं न जनधाडररती को कर छूट के जलए अपात्र ठहराएगा।
3. यह अजधसूचना रािपत्र में उसके प्रकािन की तारीख से प्रिृत्त होगी।
[अजधसूचना स.ं 86/2022/फा. स.ं 500/पीएफ1/एस10(23चड.)/एफटी और टीआर-II]
श्री ित्स सेहरा, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 21st July, 2022
(INCOME-TAX)
S.O. 3324(E).—In exercise of the powers conferred by sub-clause (iv) of clause (c) of the
Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred
to as the Act), the Central Government hereby specifies the pension fund, namely, CPPIB Credit
Investments VI Inc. (PAN: AAGCC5549K), (hereinafter referred to as the assessee) as the specified person
for the purposes of the said clause in respect of the eligible investment made by it in India on or after the
date of publication of this notification in the Official Gazette but on or before the 31st day of March, 2024
(hereinafter referred to as the said investments) subject to the fulfillment of the following conditions,
namely:-[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
(i) the assessee shall file return of income, for all the relevant previous years falling within the
period beginning from the date in which the said investment has been made and ending on the
date on which such investment is liquidated, on or before the due date specified for furnishing
the return of income under sub-section (1) of section 139 of the Act;
(ii) the assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of
compliance to the provisions of clause (23FE) of section 10 of the Act, during the financial
year, from an accountant as defined in the Explanation below sub-section (2) of section 288 of
the Act, as per the provisions of clause (vi) of rule 2DB of the Income-tax Rules, 1962;
(iii) the assessee shall intimate the details in respect of each investment made by it in India during
the quarter within one month from the end of the quarter in Form No. 10BBB, as per the
provisions of clause (v) of rule 2DB of the Income-tax Rules, 1962;
(iv) the assessee shall maintain a segmented account of income and expenditure in respect of such
investment which qualifies for exemption under clause (23FE) of section 10 of the Act;
(v) the assessee shall continue to be regulated under the law of the Government of Canada;
(vi) the assessee shall be responsible for administering or investing the assets for meeting the
statutory obligations and defined contributions of one or more funds or plans established for
providing retirement, social security, employment, disability, death benefits or any similar
compensation to the participants or beneficiaries of such funds or plans, as the case may be;
(vii) the earnings and assets of the assessee should be used only for meeting statutory obligations
and defined contributions for participants or beneficiaries of funds or plans referred to in clause
(vi) and no portion of the earnings or assets of the pension fund inures any benefit to any other
private person; barring any payment made to creditors or depositors for loan or borrowing [as
defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the
Act] taken for the purposes other than for making investment in India;
(viii) the assessee shall not have any loans or borrowings [as defined in sub-clause (b) of clause (ii)
of Explanation 2 to clause (23FE) of section 10 of the Act], directly or indirectly, for the
purposes of making investment in India; and
(ix) the assessee shall not participate in the day to day operations of investee [as defined in clause
(i) of Explanation 2 to clause (23FE) of section 10 of the Act] but the monitoring mechanism to
protect the investment with the investee including the right to appoint directors or executive
director shall not be considered as participation in the day to day operations of the investee.
2. Violation of any of the conditions as stipulated in the said clause (23FE) of section 10 of the Act
and this notification shall render the assessee ineligible for the tax exemption.
3. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 86/2022/F. No. 500/PF1/S10(23FE)/FT&TR-II]
SRI VATSA SEHRA, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.