## Policy Analysis Report: Income Tax Exemption for Sovereign Wealth Fund Investments - Notification No. 62/2021
**1. Executive Summary:**
This report analyzes Notification No. 62/2021, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, concerning income tax exemptions for investments made in India by specified Sovereign Wealth Funds (SWFs). The notification specifies the CDC Group Plc. as an eligible entity for exemption under clause 23FE of section 10 of the Income-tax Act, 1961, subject to fulfilling specific conditions. This report details those conditions, the relevant timelines, and the implications for the CDC Group Plc. and related stakeholders. The key finding is that the notification aims to attract foreign investment by offering tax exemptions while ensuring transparency and adherence to regulatory requirements.
**2. Introduction:**
The purpose of this report is to provide a comprehensive analysis of Notification No. 62/2021 (S.O. 1852(E)), specifically focusing on the criteria and conditions attached to the income tax exemption granted to specified Sovereign Wealth Funds investing in India. This analysis is based solely on the provided policy text.
**3. Policy Overview:**
This notification pertains to a provision within the Income-tax Act, 1961. It specifies criteria for tax exemption under Section 10, clause 23FE, focusing on Sovereign Wealth Fund investments.
* **Core Objective(s) as inferred from the text:** The primary objective, as inferred from the text, is to incentivize investments in India by Sovereign Wealth Funds by offering tax exemptions on income derived from such investments. This is achieved by specifying eligibility criteria and operational conditions that SWFs must adhere to. A secondary objective appears to be ensuring that the benefits accrue to the government/sovereign entity controlling the SWF, and that investment practices are transparent and compliant with Indian regulations.
**4. Background and Rationale:**
This appears to be a *new* policy specification. The rationale behind this policy is likely to attract foreign investment into India, as indicated by the tax exemption offered to Sovereign Wealth Funds (SWFs). The conditions attached to the exemption suggest a need to ensure that the investments are genuinely beneficial to the Indian economy, that the SWFs operate with integrity, and that the benefits accrue to the foreign government rather than private individuals. By providing clarity on the eligibility criteria and operational requirements, the policy likely aims to encourage SWFs to consider India as a viable investment destination.
**5. Key Provisions / Changes:**
This is a *New Policy Specification* outlining provisions for tax exemptions. The key provisions of Notification No. 62/2021 are:
* **Designation of CDC Group Plc.:** The notification explicitly designates the CDC Group Plc. as a "specified person" eligible for tax exemption under clause 23FE of section 10 of the Income-tax Act, 1961.
* **Investment Period:** The exemption applies to investments made by the CDC Group Plc. in India on or after May 13, 2021 (date of publication) but on or before March 31, 2024.
* **Conditions for Exemption:** The exemption is contingent upon the CDC Group Plc. fulfilling the following conditions:
* **Filing of Income Tax Returns:** Filing income tax returns for all relevant previous years within specified deadlines.
* **Audit of Accounts:** Auditing of books of account by a qualified accountant and submission of the audit report one month prior to the income tax return due date. The audit report requires specific details outlined in the attached Annexure (Part I and Part II).
* **Quarterly Statements:** Submission of quarterly statements in Form II, as per Circular No. 15 of 2020.
* **Segmented Accounting:** Maintaining a segmented account of income and expenditure related to the investment qualifying for the exemption.
* **Ownership and Control:** Continued ownership and control of the CDC Group Plc. by the Government of the United Kingdom.
* **Regulatory Compliance:** Continued regulation of the CDC Group Plc. under the laws of the Government of the United Kingdom.
* **Earnings Allocation:** Earnings must be credited to the account of the Government of the United Kingdom or designated by that Government.
* **No Borrowings for Investment:** Prohibition of loans or borrowings for making investments in India.
* **Asset Vesting:** Assets must vest in the Government of the United Kingdom upon dissolution.
* **Limited Operational Role:** Restriction on participation in the day-to-day operations of the investee company. Monitoring activities and the right to appoint directors are excluded from this restriction.
* **Audit Report Annexure:** The notification includes an Annexure detailing the format for the audit report to be filed by the SWF. This includes information about the assessee, compliance with conditions, details of investments, and other relevant information. It mandates providing details of the nature of income, the entity in which the investment is made, and confirmation of adherence to specific conditions related to ownership, regulation, and operation of the SWF.
* **Violation Clause:** Violation of any of the conditions stipulated in clause 23FE of section 10 of the Act and the 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 (May 13, 2021).
**6. Target Audience and Stakeholders:**
The primary target audience is the CDC Group Plc., as it is explicitly named as the "specified person" eligible for the tax exemption. Other stakeholders include:
* **The Government of the United Kingdom:** As the owner and controller of the CDC Group Plc., it is a key stakeholder with a vested interest in the investment's success and compliance with the policy.
* **The Ministry of Finance, Department of Revenue, and Central Board of Direct Taxes (CBDT) in India:** These are the responsible agencies for implementing and monitoring the policy.
* **Investee companies in India:** These companies receive the investment from the CDC Group Plc. and are indirectly affected by the policy's conditions.
* **Accountants and Auditors:** Who are responsible for conducting the audit and providing the audit report outlined in the Annexure.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT), under the Department of Revenue, Ministry of Finance, is the primary body responsible for implementing and overseeing this policy.
* **Timelines and Procedures:**
* Investments must be made between May 13, 2021, and March 31, 2024, to qualify for the exemption.
* Income tax returns must be filed by the due date specified under section 139(1) of the Income-tax Act, 1961.
* Audit reports must be submitted at least one month before the income tax return due date.
* Quarterly statements (Form II) must be submitted within one month from the end of each quarter.
* **Audit Report Process**: The audit report needs to be completed by a qualified accountant, according to the Annexure format, and submitted before the tax return deadline. The audit has to verify compliance with Section 23FE conditions.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of this policy is to attract investment from the CDC Group Plc. into India, fostering economic growth. The specific conditions attached to the exemption are designed to ensure:
* Transparency and accountability in the investment process.
* Compliance with Indian tax regulations.
* The investment benefits accrue to the intended beneficiaries (the Government of the United Kingdom, ultimately) and not private individuals.
* The SWF does not unduly interfere with the day-to-day operations of the investee company.
* Long-term commitment and stability of the investment.
**9. Conclusion:**
Notification No. 62/2021 offers a specific income tax exemption to CDC Group Plc. for investments made in India, subject to stringent conditions. The policy aims to attract foreign investment while safeguarding against potential misuse and ensuring compliance with Indian tax laws. The detailed conditions and reporting requirements suggest a focus on transparency and accountability. The notification is significant as it provides clarity and certainty for the CDC Group Plc., encouraging further investment in the Indian economy within the specified timeframe. Affected industries should note the specific criteria and compliance requirements to benefit from the exemption.
Key Entities Referenced
NEW DELHI: Place of publication of the gazette notification.
Incometax Act, 1961: The Act referred to in the notification, specifically section 10, clause 23FE and section 139.
Central Government: The governing body empowered to specify sovereign wealth funds for tax exemption purposes.
CDC Group Plc.: The sovereign wealth fund being specified as a 'specified person' for tax exemption under section 10(23FE) of the Incometax Act, 1961.
India: The country where the investment is made by the sovereign wealth fund.
Official Gazette: The official publication where the notification is published.
Ministry of Finance: The ministry under which the Department of Revenue and Central Board of Direct Taxes operate.
Department of Revenue: A department of the Ministry of Finance.
Central Board of Direct Taxes: The board issuing the notification and responsible for direct taxes.
Form II: The format for quarterly statement as annexed to the Circular No 15 of 2020.
Tax Policy and Legislation Division: A division of the Central Board of Direct Taxes
Government of the United Kingdom: The government owning and controlling the CDC Group Plc.
Circular No 15 of 2020: A circular issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes Tax Policy and Legislation Division.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-13052021-226989
xxxGIDHxxx
CG-DL-E-13052021-226989
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ऄसाधारण
EXTRAORDINARY
भाग II—खण्ड 3—ईप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1725] नइ ददल्ली, बहृ स्ट्प जतिार, मइ 13, 2021/ििै ाख 23, 1943
No. 1725] NEW DELHI, THURSDAY, MAY 13, 2021/VAISAKHA 23, 1943
जित्त मत्रं ालय
(राजस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोड)ड
ऄजधसचू ना
नइ ददल्ली,13 मइ, 2021
(अय-कर)
का.अ. 1852(ऄ).—केंद्रीय सरकार, अय-कर ऄजधजनयम, 1961 (1961 का 43) (जजसे आसमें आसके पश्चात ्
“ऄजधजनयम” कहा गया है) के खंड (23चङ) के स्ट्पष्टीकरण 1 के खंड (ख) के ईपखंड (vi) द्वारा प्रदत्त िजियों का प्रयोग
करते हुए स्ट्ियंभू धन जनजध ऄथाडत्, सी डी सी ग्रुप पीएलसी. (जजसे आसमें आसके पश्चात ् “जनधाडररती” कहा गया है) को, ईि
खंड के प्रयोजनों के जलए ईसके द्वारा राजपत्र में आस ऄजधसूचना के प्रकािन की तारीख को या ईसके पश्चात ् ककतु 31 माचड,
2024 को या ईसस े पूिड भारत म ें दकए गए जिजनधानों (जजस े आसमें आसके पश्चात ् “ईि जनििे ” कहा गया है) के संबंध में,
जनम्नजलजखत ितों को पूरा करने के ऄधीन रहते हुए, जिजनर्ददष्ट व्यजि के रूप म ें जिजनर्ददष्ट करती है, ऄथाडत् :--
(i) जनधाडररती, ईस तारीख से प्रारंभ होन े िाली तारीख, जजसको ईि जिजनधान दकए गए ह,ैं से ईस तारीख, जजसको
जिजनधान पररसमाप्त दकए गए ह,ैं में अन े िाले सभी सुसंगत पूिडिती िर्षों के जलए ऄजधजनयम की धारा 139 की
ईपधारा (1) के ऄधीन अय की जििरणी प्रस्ट्तुत करने की जिजनर्ददष्ट जनयत तारीख को या ईससे पूि ड अय की
जििरणी फाआल करेगा ।
2615 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ii) जनधाडररती खंड (i) में जनर्ददष्ट पूिडिती िर्षों के जलए ऄपनी लेखाबजहयों की लेखापरीक्षा ऄजधजनयम की धारा 288
की ईपधारा (2) के नीचे स्ट्पष्टीकरण में जिजनर्ददष्ट दकसी लेखापाल से करिाएगा और आस ऄजधसूचना से ईपाबद्ध
ईपाबंध म ें ददए गए प्ररूप में ऄजधजनयम की धारा 139 की ईपधारा (1) के ऄधीन अय-कर की जििरणी
प्रस्ट्तुत करने के जलए जिजनर्ददष्ट जनयत तारीख से कम से कम एक मास पूिड प्रस्ट्तुत करेगा ।
(iii) जनधाडररती एक त्रैमाजसक जििरण, प्रत्येक जतमाही के ऄंत से एक मास के भीतर, पररपत्र सं. 2020 का 15,
तारीख 22 जुलाइ, 2020 से ईपाबद्ध प्ररुप 2, जजस े जित्त मंत्रालय, राजस्ट्ि जिभाग, केंद्रीय प्रत्यक्ष कर बोडड (कर
नीजत और जिधान प्रभाग) द्वारा फा.सं. 370142/26/2020-टीपीएल द्वारा जारी दकया गया था, में ईि जतमाही
के दौरान दकए गए प्रत्येक जिजनधान के संबंध में आलैक्ट्राजनकी रूप में जारी करेगा ।
(iv) जनधाडररती ऐस े जिजनधानों के संबंध म,ें जो ऄजधजनयम की धारा 10 के खंड (23चङ) के ऄधीन छूट के जलए
ऄर्हहत हैं, के संबंध में अय और व्यय का खंडिार लेखा रखेगा ।
(v) जनधाडररती का यूनाआटेड ककगडम सरकार द्वारा प्रत्यक्षत: या ऄप्रत्यक्षत: स्ट्िाजमत्ि में रहना और जनयंजत्रत दकया
जाना जारी रहेगा और जनधाडररती पर, दकसी भी समय, दकसी और व्यजि का, प्रत्यक्षत: या ऄप्रत्यक्षत: स्ट्िाजमत्ि
या जनयंत्रण नहीं होना चाजहए ।
(vi) जनधाडररती का यूनाआटेड ककगडम सरकार की जिजध के ऄधीन जिजनयजमत होना जारी रहगे ा ।
(vii) जनधाडररती के ईपाजडनों का या तो यूनाआटेड ककगडम सरकार के खात े में या ईस सरकार द्वारा पदाजभजहत दकसी
ऄन्य खाते म ें प्रत्यय दकया जाएगा तादक भारत में जिजनधान करने से जभन्न ऄन्य प्रयोजनों के जलए ऋण जलया
या ईधार [जैसा दक ऄजधजनयम की धारा 10 खंड (23चड) के स्ट्पष्टीकरण-2 के खंड (ii) के ईपखंड (क) म ें
ऄजभप्रेत है] के जलए लेनदारों या जमाकताडओं को दकसी संदाय के जसिाय ईपाजडनों के दकसी भाग को दकसी
प्राआिेट व्यजि को नहीं ददया जाएगा ।
(viii) जनधाडररती के पास भारत म ें जिजनधान करने के प्रयोजन के जलए प्रत्यक्षत: या ऄप्रत्यक्षत: कोइ ऋण या ईधार
[जैसा दक ऄजधजनयम की धारा 10 खंड (23चड) के स्ट्पष्टीकरण-2 के खंड (ii) के ईपखंड (क) म ें ऄजभप्रेत है]
नहीं होगा।;
(ix) जनधाडररती की अजस्ट्त जिघटन पर भारत में जिजनधान करने से जभन्न ऄन्य प्रयोजनों के जलए ऋण या ईधार के
जलए लेनदारों या जमाकताडओं को दकसी संदाय को छोड़कर यूनाआटेड ककगडम सरकार में जनजहत होगी।; और
(x) जनधाडररती जिजनधान प्राप्तकताड [जैसा दक ऄजधजनयम की धारा 10 खंड 23(चड) के स्ट्पष्टीकरण-2 के खंड (i) म ें
ऄजभप्रेत ह]ै के ददन प्रजतददन के प्रचालनों म ें भाग नहीं लेगा पंरतु जिजनधान प्राप्तकताड के साथ जिजनधान की
संरक्षा के जलए मॉनीटरी तंत्र को, जजसम ें जनदिे क या कायडपालक जनदिे कों को जनयुि करना सजममजलत ह,ै
जिजनधान प्राप्तकता ड के ददन प्रजतददन के प्रचालनों में भाग लेना नहीं समझा जाएगा.
2. अय-कर ऄजधजनयम, 1961 की धारा 10 के खंड (23चङ) और आस ऄजधसूचना में यथा ईपदर्हित दकसी भी ितड
का ईल्लंघन जनधाडररती को कर छूट से ऄयोग्य ठहराएगा ।
3. यह ऄजधसूचना राजपत्र में ईसके प्रकािन की तारीख को प्रिृत्त होगी ।
ईपाबधं
अय-कर ऄजधजनयम, 1961 की धारा 10 के खंड (23चङ) के ऄधीन छूट का दािा करने िाली स्ट्ियंभू धन जनजध द्वारा
फाआल की जाने िाली लेखापरीक्षा ररपोटड
भाग I
*मैं/हम ररपोटड करते ह ैं दक मैससड ………...........…………………. (जनधाडररती की स्ट्थायी लेखा संख्या या अधार संख्या
सजहत नाम और पता), जजनकी जिजिजष्टया ं भाग II में दी गइ ह,ैं की कानूनी लेखापरीक्षा ऄजधसूचना सं. ..... तारीख ......,
जो राजपत्र में प्रकाजित की गइ थी, की ऄपेक्षाओं के ऄनुसार, *मेरे/हमारे/मैससड …………………………………..………. द्वारा संचाजलत
की गइ थी ।
2. *मेरी /हमारी राय म ें और *मेरी/हमारी सिोत्तम जानकारी के ऄनुसार तथा लेखा बजहयों की जांच के ऄनुसार,
जजसके ऄंतगडत सुसंगत दस्ट्तािेज *मुझ/ेहमें ददए गए स्ट्पष्टीकरण भी हैं, यह प्रमाजणत दकया जाता है दक जनधाडररती ने अय-[भाग II—खण् ड 3(ii)] भारत का राजपत्र : ऄसाधारण 3
कर ऄजधजनयम, 1961 की धारा 10 के खंड (23चङ) म ें ऄजधकजथत सभी ितों और जनधाडररती को ईि खंड (23चङ) के
ऄधीन छूट का दािा करने के प्रयोजन के जलए स्ट्ियंभू धन जनजध के नात े जनधाडररती को जिजनर्ददष्ट व्यजि के रूप में जिजनर्ददष्ट
करने िाली ऄजधसूचना में ईपबंजधत सभी ितों का ऄनुपालन दकया ह/ै नहीं दकया है ।
2.1 *िह ितें, जजनका जनधाडररती ने ऄनुपालन नहीं दकया है, नीचे ददए ऄनुसार ह:ैं
(क) …………………………….…………………………….………………………………
(ख) …………………………….…………………………….………………………………
3. *मेरी/हमारी राय में और *मेरी/हमारी सिोत्तम जानकारी और लेखा बजहयों की परीक्षा, जजसके ऄंतगडत *मुझ/ेहम ें
ददए गए सुसंगत दस्ट्तािेज और स्ट्पष्टीकरण हैं, भाग II म ें दी गइ जिजिजष्टयां जनम्नजलजखत पयडिेक्षणों, ऄहतड ाओं, यदद कोइ हों,
के ऄधीन रहते हुए सत्य और सही ह,ैं ऄथाडत ् :--
(क) …………………………….…………………………….………………………………
(ख) …………………………….…………………………….………………………………
भाग 2
1. जनधाडररती का नाम :
2. पैन/अधार :
3. पूि ड िर्षड :
4. पूि ड िर्षड के दौरान जनधाडररती की कुल अय
5. ऄजधजनयम की धारा 10 के खंड (23चङ) के ऄधीन छूट के जलए पात्र अय की कुल रकम (सारणी 11 की मद सं.
6 के ऄनुसार ब्यौरे) :
6. दकए गए जिजनधान का ऄथिेर्ष (ऄथाडत् पूिडिती जित्तीय िर्षड की ऄंजतम तारीख को ऄजतिेर्ष), जो धारा 10 के खंड
(23चङ) के ऄधीन छूट के जलए पात्र ----------------ह ै (रु. में) और ऄिजध के दौरा स्ट्ियंभू धन जनजध (एसडब्ल्यूएफ)
द्वारा के गए जिजनधान के ब्यौरे, जो पूिडिती जित्तीय िर्षड की ऄंजतम तारीख की जस्ट्थजत के ऄनुसार आजतिेर्ष ह)ै :
क्रम जिजनधान जिजनधान जिजनधान अय की िर्षड के ईस ऄजस्ट्तत्ि के ब्यौरे जजसमें जिजनधान दकया गया ह ै अय की रकम,
सं. की की रकम की प्रकृजत प्रकृजत दौरान
जो धारा 10
तारीख (ऄनुदेि (ऄनुदेि जिजनधान
पर अय
के खंड (चङ)
4) 5)
की रकम के ऄधीन छूट
की पात्र ह ै
(सुसंगत जनयमों
के ऄनुसार
संगणना िीट
संलग्न करें)4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
ऄजस्ट्तत्ि नाम पैन ऄजस्ट्तत्ि की प्रकृजत की कूट
की संजहता3/4/5 की दिा में, क्ट्या
प्रकृजत
ऄजस्ट्तत्ि ने धारा 10 के खंड
(ऄनुदेि
(23चङ) के ईपखंड (iii) की
6)
मद (ग) या मद (घ) या मद
(ङ) में यथाऄपेजक्षत 50 या
75 या 90 प्रजतित न्यूनतम
जिजनधान दकया ह ै (सुसंगत
जनयमों के ऄनुसार संगणना
िीट संलग्न करें)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
1.
2.
योग
7.*एसडब्ल्यूएफ ने ऄजधजनयम की धारा 10 के खंड (23चङ) के ऄधीन छूट के प्रयोजनों के जलए ईस तारीख से तीन िर्ष ड
की ऄिजध के ऄिसान से पूिड जजसको ईि छूट के संबंध में जिजनधान दकया गया है, दकए गए दकन्हीं जिजनधानों का जिक्रय
नहीं दकया है/ एसडब्ल्यूएफ ने ऄजधजनयम की धारा 10 के खंड (23चङ) के ऄधीन छूट के प्रयोजनों के जलए दकए गए
कजतपय जिजनधानों का ईस तारीख से तीन िर्षड की ऄिजध के ऄिसान से पूिड जजसको ईि छूट के संबंध में जिजनधान दकया
गया ह,ै दकए गए दकन्हीं जिजनधानों का जिक्रय दकया ह,ै जजसके ब्यौरे नीच े ददए ऄनुसार ह ै :
क्रम जिजनधान की जिजनधान की अय की िर्षड के दौरान ईस ऄजस्ट्तत्ि के ब्यौरे जजसमें जिजनधान जिक्रय
सं. तारीख प्रकृजत प्रकृजत जिजनधान पर दकया गया है की
(ऄनुदिे 4) (ऄनुदिे 5) अय की तारीख
रकम ऄजस्ट्तत्ि की प्रकृजत नाम पैन
(ऄनुदिे 7)
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1.
2.
योग
8. - एसडब्ल्यूएफ ऄजधजनयम की धारा 10 के खंड (23चङ) के ऄधीन छूट के प्रयोजनों के जलए ऄपेजक्षत सभी ितों को
पूरा करता है, ऄथाडत,्-[भाग II—खण् ड 3(ii)] भारत का राजपत्र : ऄसाधारण 5
क. क्ट्या एसडब्ल्यूएफ प्रत्यक्षतः या ऄप्रत्यक्षतः दसू रे दिे की सरकार के पूणड हां/नहीं
स्ट्िाजमत्ि और जनयंत्रण में है
ख. दसू रे दिे की सरकार के नाम का िणडन करें जजसके स्ट्िाजमत्ि और जनयंत्रण
म ें एसडब्ल्यूएफ प्रत्यक्षतः या ऄप्रत्यक्षतः ह ै
ग. क्ट्या एसडब्ल्यूएफ प्रत्यक्षतः या ऄप्रत्यक्षतः दसू रे दिे की सरकार के स्ट्िाजमत्ि प्रत्यक्षतः / ऄप्रत्यक्षतः
और जनयंत्रण में है
घ. दसू रे दिे की सरकार द्वारा ऄप्रत्यक्षतः एसडब्ल्यूएफ का स्ट्िाजमत्ि और
जनयंत्रण रखने की दिा में स्ट्िाजमत्ि की श्ृंखला के ब्यौरे
ङ. ईस जिजध का नाम जजसके ऄधीन एसडब्ल्यूएफ की स्ट्थापना की गइ है और
जिजनयजमत दकया जाता ह ै
च. क्ट्या ईि जनजध से ऄजडनों का प्रत्यय या तो ईस दसू रे दिे की सरकार के हां/नहीं
खात े में दकया जाता है या ईस सरकार द्वारा ऄजभजहत दकसी ऄन्य खाते म ें
दकया जाता है जजससे ऄजडनों के दकसी भाग से दकसी प्राइिेट व्यजि को
कोइ फायदा न हों जसिाय भारत म ें जिजनधान करने से जभन्न दकन्हीं प्रयोजनों
के जलए लेनदारों या जमाकताडओं द्वारा जलए गए ऋण या ईधारों के दकसी
संदाय के जलए ।
छ. क्ट्या ईि जनजध की अजस्ट्त ईस दसू रे दिे की सरकार में जिघटन के ईपरांत ह
जसिाय भारत में जिजनधान करने से जभन्न दकन्हीं प्रयोजनों के जलए लेनदारों हां/नहीं
या जमाकताडओं द्वारा जलए गए ऋण या ईधारों के दकसी संदाय के जलए
जिजहत हो जाएगी ।
ज. यदद (च) या (छ) का ईत्तर नहीं है तो जनम्नजलजखत ब्यौरे द ें :
i. प्राइिेट व्यजि का नाम
ii. िर्षड के दौरान ईपबंजधत फायद े की रकम
झ. क्ट्या िह ऄजधजनयम की धारा 10 के खंड (23चङ) के स्ट्पष्टीकरण 3 म ें हां/नहीं
यथा पररभाजर्षत दकसी व्यजि जजसके जलए जिजनधान दकया गया ह,ै के
ददन प्रजतददन के प्रचालनों म ें भाग लेता है, जसिाय िह व्यजि जजसके पास
जिजनधान दकया गया है, जिजनधान की संरक्षा करने के दकसी तंत्र की
मानीटरी करने के, जजसक ऄंतगडत जनदिे क या कायडपालक जनदिे क जनयुि
करने का ऄजधकार है
ञ. यदद (झ) का ईत्तर हां ह,ै तो जनम्नजलजखत ब्यौरे द ें :
i.जजसके पास जिजनधान दकया गया है, का नाम
ii.जजसके पास जिजनधान दकया गया ह,ै का पैन
iii.जजसके पास जिजनधान दकया गया है, के पास िर्षड के ऄंत में
जिजनधान की रकम
ट. क्ट्या ईसने ईसके द्वारा भारत में दकए गए जिजनधान के ब्यौरों की पररपत्र हां/नहीं
स.ं 15/2020 तारीख 22.07.2020 द्वारा जारी प्ररूप सं. 2 में संसूचना की
ऄपेक्षा की ऄनुपालना की ह ै
ठ. क्ट्या ईसके पास भारत में जिजनधान करने के प्रयोजनों के जलए प्रत्यक्षतः या हां/नहीं
ऄप्रत्यक्षतः धारा 10 के खंड (23चङ) के स्ट्पष्टीकरण 2 में यथापररभाजर्षत6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
ऋण या ईधार ह ै
ड. यदद (ठ) का ईत्तर हां म ें है, तो जनम्नजलजखत ब्यौरे द:ें हां/नहीं
(i) ईस व्यजि का नाम जजससे पैसा ऋण या ईधार जलया गया ह ै
(ii) िर्षड के प्रारंभ में ऋण या ईधार की रकम
(iii) िर्षड के दौरान प्राप्त ऋण या ईधार की रकम
(iv) िर्षड के दौरान पुनः संदत्त ऋण या ईधार की रकम
(v) िर्षड के ऄंत में ऋण या ईधार की रकम
ढ. ऐसे जिजनधान के संबंध में, जो ऄजधजनयम की धारा 10 के खंड (23चङ) के हां/नहीं
ऄधीन छूट के जलए ऄर्हहत होता है, अय और जिजनधान के जलए पृथक
खंडिार लेखा रखा गया है ।
स्ट्थान : ……………
तारीख : ……………
** (हस्ट्ताक्षर और हस्ट्ताक्षरकताड की स्ट्टेंप/मुहर)
हस्ट्ताक्षरकताड का नाम …………………
पूरा पता ……………………………
सदस्ट्यता स.ं………………………
यूडीअइएन………………………………..
ऄनुदिे : 1. *जो लाग ू न हों, ईसे काट दें ।
2. यह प्रमाणपत्र दकसी ऄजधजनयम की धारा 281 की ईपधारा (2) के नीचे ददए गए स्ट्पष्टीकरण में यथा पररभाजर्षत दकसी
लेखापाल द्वारा दी जानी ह ै ।
3. “जजसके पास जिजनधान दकया गया ह”ै का िहीं ऄथड होगा जो ईसका ऄजधजनयम की धारा 10 के खंड (23चङ) के
स्ट्पष्टीकरण 2 के खंड (i) ह ैं और “ऋण और ईधार” का िहीं ऄथड होगा जो ईसका ऄजधजनयम की धारा 10 के खंड (23चङ)
के स्ट्पष्टीकरण 2 के खंड (ii) के ईपखंड (क) में ह ैं ।
4. जनम्नजलजखत में से दकसी एक कूट का चयन दकया जाना ह ै :
जिजनधान की प्रकृजत कूट
ईधार
1
सामय
2
ऄजधमानी िेयर
3
ऄन्य (कृपया जिजनर्ददष्ट करें) 4
5. जनम्नजलजखत में से दकसी एक कूट का चयन दकया जाना ह:ै
अय की प्रकृजत कूट[भाग II—खण् ड 3(ii)] भारत का राजपत्र : ऄसाधारण 7
ब्याज
1
लाभांि
2
पूंजी ऄजभलाभ
3
ऄन्य
4
6. जनम्नजलजखत में से दकसी एक कूट का चयन दकया जाना ह:ै
ऄजस्ट्तत्ि की प्रकृजत जजसम ें जिजनधान दकया जाता ह ै कूट
ऄजधजनयम की धारा 10 के खंड (23चङ) के ईपखंड (iii) की मद (क) में जनर्ददष्ट कारबार न्यास 1
ऄजधजनयम की धारा 10 के खंड (23चङ) के ईपखंड (iii) की मद (ख) में जनर्ददष्ट कंपनी या ईपक्रम या ऄजस्ट्तत्ि 2
ऄजधजनयम की धारा 10 के खंड (23चङ) के ईपखंड (iii) की मद (ग) म ें जनर्ददष्ट िैकजल्पक जिजनधान जनजध 3
ऄजधजनयम की धारा 10 के खंड (23चङ) के ईपखंड (iii) की मद (घ) में जनर्ददष्ट दसे ी कंपनी 4
ऄजधजनयम की धारा 10 के खंड (23चङ) के ईपखंड (iii) की मद (ङ) में जनर्ददष्ट ऄिसंरचना जित्त कंपनी/ 5
ऄिसंरचना ऋण जनजध-एनबीएफसी
[ऄजधसूचना स.ं 62 /2021 /फा.सं. 370142/47/2020-टीपीएल]
कमलेि चंद्र िार्ष्णेय, संयुि सजचि(कर नीजत और जिधान प्रभाग)
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 13th May, 2021
(INCOME-TAX)
S.O. 1852(E).—In exercise of the powers conferred by sub-clause (vi) of clause (b) 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 sovereign wealth fund, namely, the CDC Group Plc., (hereinafter referred to as “the
assessee”) as the specified person for the purposes of the said clause in respect of the 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 “said investments”) subject to the fulfilment of the following conditions, namely:-
(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 get its books of account audited for the previous years referred to in clause (i) by any
accountant specified in the Explanation below sub-section (2) of section 288 of the Act and furnish the
Audit Report in the format annexed as Annexure to this notification herewith at least one month prior to the
due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act;
(iii) the assessee shall furnish a quarterly statement within one month from the end of each quarter electronically
in Form II as annexed to the Circular No 15 of 2020, dated the 22nd July, 2020 with F. No. 370142/26/2020-
TPL, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Tax
Policy and Legislation Division), in respect of each investment made by it during the said quarter;
(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;8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(v) the assessee shall continue to be owned and controlled, directly or indirectly, by the Government of the
United Kingdom and at no point of time any other person should have any ownership or control, directly or
indirectly, in the assessee;
(vi) the assessee shall continue to be regulated under the law of the Government of the United Kingdom;
(vii) the earnings of the assessee shall be credited either to the account of the Government of the United Kingdom
or to any other account designated by that Government so that no portion of the earnings inures to any
private person barring any payment made to creditors or depositors for loan taken or borrowing [as defined
in sub-clause (a) 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 (a) 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;
(ix) the asset of the assessee shall vest in the Government of the United Kingdom upon dissolution barring any
payment made to creditors or depositors for loan taken or borrowing for the purposes other than for making
investment in India; and
(x) 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.
ANNEXURE
Audit report to be filed by the Sovereign Wealth Fund claiming exemption under clause (23FE) of section 10 of
the Income -tax Act, 1961
Part I
*I/we report that the statutory audit of M/s. ………...........…………………. (Name and address of the
assessee with Permanent Account Number or Aadhaar Number), the particulars of which are given in Part II was
conducted by *me/ us/ M/s. …………………………………………..………. as per the requirement under the
Notification No …../…… dated ……… published in the Official Gazette on ……....
2. In *my/ our opinion and to the best of *my/ our information and according to examination of books of
account including other relevant documents and explanations given to *me/us, it is certified that the assessee *has/ has
not complied with the conditions as laid down under clause (23FE) of section 10 of the Income-tax Act, 1961 and
those provided in the said notification specifying the assessee being the Sovereign Wealth Fund as specified person
for the purposes of claiming exemption under the said clause (23FE).
2.1 *The conditions not complied with by the assessee are as under:-
(a) …………………………….…………………………….………………………………
(b) …………………………….…………………………….………………………………
3. In *my/our opinion and to the best of *my/ our information and according to examination of books of
account including other relevant documents and explanations given to *me/us, the particulars given in the Part II are
true and correct subject to the following observations/qualifications, if any, namely:-
(a) …………………………….…………………………….………………………………
(b) …………………………….…………………………….………………………………
Part II
1. Name of the Assessee :
2. PAN/ AADHAAR :
3. Previous Year :
4. Total Income of the Assessee during the previous year
5. Total amount of income eligible for exemption under clause
(23FE) of section 10 of the Act (as per details in column 11 of
table
at item no.6) :[भाग II—खण् ड 3(ii)] भारत का राजपत्र : ऄसाधारण 9
6. The opening balance (i.e. the closing balance as on the last date of the preceding financial year) of the
investment made which is eligible for exemption under clause (23FE) of section 10 is ______________(in
rupees) and details of the investment by the Sovereign Wealth Fund (SWF) during the period are as under:
Sl. Date of Amount of Nature Nature of Amount of Details of the entity in which Investment Amount of
No. investment investment of income income on made income
investment (instruction investment Nature of Name PAN In case if which is
(Instruction 5) during the entity nature of eligible for
4) year (instruction entity code exemption
6) is 3/4/5, under
whether the clause
entity has (23FE) of
made section 10
minimum (Attach
investment calculation
of 50 or75 or sheet as
90 percent as per
required in relevant
item (c) or rules)
(d) or (e) of
sub-clause
(iii) of
clause
(23FE) of
section 10
(Attach
calculation
sheet as per
relevant
rules)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
1.
2.
Total
7.*the SWF has not sold any of the investments made for the purposes of exemption under clause (23FE) of section 10
of the Act before the expiry of three years from the date on which the investment was made in respect of the said
exemption/the SWF has sold certain investments made for the purposes of exemption under clause (23FE) of section
10 of the Act before the expiry of three years from the date on which the investment was made in respect of the said
exemption, the details of which are as under:
Sl Date of Nature Nature of Amount of Details of the entity in which Date of
No investment of income income on Investment made sale
investment (instruction investment Nature of entity Name PAN
(Instruction 5) during the (instruction 7)
4) year
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1.
2.
Total
7. The SWF satisfies all the conditions required for the purposes of exemption under clause (23FE) of section
10 of the Act, that is, -
a) Whether the government of foreign country wholly owns and controls the SWF, directly or Yes/No
indirectly
b) Mention the name of the government of foreign country which owns and controls the SWF,
directly or indirectly
c) Whether the government of foreign country owns and controls the SWF, directly or indirectly Directly/
Indirectly10 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
d) In case if government of foreign country owns and controls the SWF, indirectly give details of
the chain of ownership
e) Name of the law under which the SWF is set up and regulated
f) Whether the earnings of the said fund are credited either to the account of the Government of Yes/No
that foreign country or to any other account designated by that Government so that no portion
of the earnings inures any benefit to any private person barring any payment made to creditors
or depositors for loan taken or borrowing for the purposes other than for making investment in
India.
g) Whether the asset of the said fund vests in the Government of such foreign country upon Yes/No
dissolution barring any payment made to creditors or depositors for loan taken or borrowing
for the purposes other than for making investment in India.
h) If answer to (f) or (g) is No, then provide the following details:
i. Name of such private person
ii. Amount of benefit provided during the year
i) Whether it participates in the day to day operations of any of the investee, as defined in Yes/No
Explanation 2 to clause (23FE) of section 10, barring any monitoring mechanism to protect
the investment with the investee including the right to appoint directors or executive director
j) If answer to (i) is yes, then provide the following details:
i. Name of such investee
ii. PAN of the investee
iii. Amount of investment in such investee at the end of the year
k) Whether it has complied with the requirement of intimation of the details of investment made Yes/No
by it in India in Form No II issued vide circular No 15/2020 dated 22.07.2020
l) Whether it has loans or borrowings, as defined in Explanation 2 to clause (23FE) of section Yes/No
10 of the Act, directly or indirectly, for the purposes of making investment in India
m) If answer to (l) is yes, then provide the following details:
i. Name of the person from whom such loan or borrowing has been taken
ii. Amount of loan or borrowing at the beginning of the year
iii. Amount of loan or borrowing received during the year
iv. Amount of loan or borrowing repaid during the year
v. Amount of loan or borrowing at the end of the year
n) Whether separate segmented account is maintained for income and investment in respect of Yes/No
investment which qualifies for exemption under clause (23FE) of section 10 of the Act
Place: ……………
Date: ……………
**(Signature and stamp/ Seal of the signatory)
Name of the signatory …………………
Full address ……………………………
Membership No………………………
UDIN………………………………..
Instructions: 1. *Delete whichever is not applicable.
2. †This certificate is to be given by an accountant as defined in the Explanation below sub-section (2) of section 288
of the Act.
3.^ An “investee” shall have the same meaning as in clause (i) to Explanation 2 to clause (23FE) of section 10 of the
Act and “Loan and borrowing” shall have the same meaning as in sub-clause (a) of clause (ii) of Explanation 2 to
clause (23FE) of section 10 of the Act.”.
4. One of the following codes is to be selected:
Nature of Investment Code
Debt 1
Equity 2[भाग II—खण् ड 3(ii)] भारत का राजपत्र : ऄसाधारण 11
Preference Shares 3
Others (Please specify) 4
5. One of the following codes is to be selected:
Nature of Income Code
Interest 1
Dividend 2
Capital Gains 3
Others 4
6. One of the following codes is to be selected:
Nature of entity in which investment is made Code
Business Trust referred to in item (a) of sub-clause (iii) of clause (23FE) of section 10 of the Act 1
Company or enterprise or entity referred to in item (b) of sub-clause (iii) of clause (23FE) of section 10 of 2
the Act
Alternative Investment Fund referred to in item (c) of sub-clause (iii) of clause (23FE) of section 10 of the 3
Act
Domestic company referred to in item (d) of sub-clause (iii) of clause (23FE) of section 10 of the Act 4
Infrastructure Finance Company/Infrastructure Debt Fund-NBFC referred to in item (e) of sub-clause (iii) 5
of clause (23FE) of section 10 of the Act
[Notification No. 62/2021/ F. No. 370142/47/2020-TPL]
KAMLESH CHANDRA VARSHNEY, Jt. Secy. (Tax Policy and Legislation Division)
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.