As per Section 9A

Income of 

Certain fund managers in India ( Called Eligible fund manager)

from  Certain foreign funds  (called Eligible Investment Fund)

shall not constitute business connection in India

and hence not taxable

 

What is Fund?

Fund is money kept aside for certain purpose is called fund

 

What is Fund Manager?

A person who manages the funds is called fund manager.

He decides where to invest and when to sell.

These activities of fund manager are called fund management activities

 

What is exempt?

Income of 

Certain fund managers in India ( Called Eligible fund manager)

from  Certain foreign funds  (called Eligible Investment Fund)

shall not constitute business connection in India

and hence not taxable

 

Note:-

This section is for determining income of fund manager and not income of eligible fund.

 

Effect of Amendment

This section was introduced to encourage fund managers to set up offices in India to manage foreign funds,

Earlier their income was taxable in India as it was deemed to accrue or arise in India

Now they have been made exempt by insertion of this new section (Section 9A)


 

What is an Eligible Investment Fund

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Who is eligible fund manager?

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What are the other conditions to be fulfilled?

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  1. Income Tax
  2. Residential Status
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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