The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has recently issued an important amendment to its previous Notification No. 55/2019, dated 26-07-2019, pertaining to the definition of an investment fund under the Income Tax Act, 1961. The notification elucidates the criteria for funds that are established or incorporated in India and fall under the...
The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has recently issued an important amendment to its previous Notification No. 55/2019, dated 26-07-2019, pertaining to the definition of an investment fund under the Income Tax Act, 1961.
The notification elucidates the criteria for funds that are established or incorporated in India and fall under the regulatory oversight of either the Securities and Exchange Board of India (SEBI) or the International Financial Services Centres Authority (IFSCA) regulations.
The amendment is in accordance with the powers conferred upon the Central Government under sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961).
The notification read as under:
“Explanation:- For the purposes of this paragraph,-
a. "investment fund" means any fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category I or a Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019);”
2. This notification shall come into force with effect from the date of its publication in the Official Gazette.”