Monday, 10 May 2021

CBDT has eased the requirement of obtaining PAN by non-resident for investing in Category -III AIF and certain listed securities in IFSC.

 CBDT had inserted Rule 114AAB of the Income-tax Rules, 1962 from 10 August, 2020 to provide that non-resident investor in specified fund is not required to obtain PAN subject to certain conditions.


Specified fund were defined to mean fund registered as a Category I or Category II Alternative Investment Fund , located in IFSC and regulated under SEBI (AIF) Regulations, 2012.

CBDT has vide notification no. 42/2021 dated 04 May, 2021 have further relaxed requirement of obtaining PAN by

1.expanding definition of specified fund to include fund registered as category III AIF with SEBI as referred in section 10(4D) of the Act
 
2.inserting sub-rule (2A) covering eligible foreign investors ('EFI') investing only in capital asset referred to in section 47(viiab) of the Act listed in stock exchange in IFSC subject to following conditions.
 
-EFI does not earn income in Indian other than from transfer of a capital asset as referred above.

No comments:

CBDT issues second round of frequently asked questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024

  This Tax Alert summarizes Circular No. 19/2024 dated 16 December 2024 (VSV 2- December Circular) issued by the Central Board of Direct Tax...