CBDT Notifies Income Tax Exemption To Pension Fund The Stichting Pensiononds ABP

The Central Board of Direct Taxes (CBDT) has notified income tax exemption to pension funds, namely, the Stichting Pensioenfonds ABP.

The Board empowered under sub-clause (iv) of clause (c) of Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 specified the pension fund, namely, the Stichting Pensioenfonds ABP as the specified person for the purposes of the section 10(23FE) in respect of the eligible investment made by it in India on or before the 31st day of March, 2024. The exemption shall be subjected to the fulfilment of various conditions.

To be eligible for the exemption, the assessee shall file return of income, for all the relevant previous years falling within the period beginning from the date in which the investment has been made and ending on the date on which investment is liquidated, on or before the due date specified for furnishing the return of income.

The assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of compliance with the provisions of clause (23FE) of section 10, during the financial year, from an accountant as defined in the Explanation of section 288(2), as per the provisions of clause (vi) of rule 2DB of the Income–tax Rules, 1962.

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.

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.

The assessee shall continue to be regulated under the laws of the Government of the Netherlands.

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.

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 loans or borrowing taken for purposes other than for making investments in India.

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 an investment in India.

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.

Notification No.89/2023

Date: 13/10/2023

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