Form 70: Annual statement of exempt and concessional-rate income for an investment division of an offshore banking unit

141. Computation of exempt income of specified fund, attributable to investment division of an offshore banking unit under Schedule VI [Table: Sl. Nos. 1 to 4] to Act. — (1) For the purposes of Schedule VI [Table: Sl. Nos. 1 to 4] to the Act, exempt income of specified fund attributable to the investment division of an offshore banking unit shall be computed in accordance with the following formula: — A + B + C + D Where, — A = any income accrued or arisen to, or received by the eligible investment division as a result of transfer of a capital asset referred to in section 70(1)(r) held by it, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange; B = any income accrued or arisen to, or received by the eligible investment division as a result of transfer of securities held by it (other than shares in a company resident in India); C = any income accrued or arisen to, or received by the eligible investment division from securities held by it and issued by a non -resident (not being a permanent establishment of a non -resident in India) and w here such income otherwise does not accrue or arise in India; and D = any income accrued or arisen to, or received by the eligible investment division from a securitisation trust, which is chargeable under the head ―Profits and gains of business or profession‖. (2) Any expenditure incurred in relation to income referred to in A or B or C or D referred to in sub -rule (1) shall not be allowed as deduction from any other income under any provision of the Act, irrespective of the fact that such expenditure has not been allowed as deduction against income referred to in the said A or B or C or D. [PDF PAGE 107] [भाग II—खण्‍ ड 3(i)] भारत‍का‍राजपत्र‍:‍असाधारण 1639 (3) The eligible investment division shall furnish an annual statement of exempt income in Form No. 70 electronically under digital signature on or before the due d ate specified under section 263(1)(c) and duly verified in the manner indicated therein. (4) For the purposes of this rule, — (a) ―eligible investment division‖ means a registered investment division which fulfils the conditions specified in rule 142; (b) ―investment division of an offshore banking unit‖ shall have the meaning assigned to it in Schedule VI [Note 1(b)] to the Act; (c) ―securities‖ shall have the meaning assigned to it in Schedule VI [Note (1)(e)]; (d) ―specified date‖, in relation to the accounts of the registered investment division of any tax year, means a date one month prior to the due date specified under section 263(1)(c) for the said tax year; and (e) ―specified fund‖ shall have the meaning assigned to it in Schedule VI [Note (1)(g)] to the Act.

143. Determination of income of a specified fund attributable to investment division of an offshore banking unit under section 210(3). – (1) For the purposes of section 210(3), income of a specified fund, being the investment division of an offshore banking unit shall be computed in accordance with the following formula: — A + B + C + D + E Where, — A = income from securities, held by the el igible investment division, as referred to in section 210(1) [Table: Sl. No. 1]; B = income by way of short -term capital gain referred to in section 210(1)[Table: Sl. No. 2], accrued or arisen to, or received by the eligible investment division as a result of transfer of a security, other than that referred to in section 196, and held by such investment division; C = income by way of short -term capital gain referred to in section 210(1)[Table: Sl. No. 3], accrued or arisen to, or received by the eligible in vestment division as a result of transfer of security referred to in section 196, and held by such investment division; D = income by way of long -term capital gain referred to in section 210(1)[Table: Sl. No. 4], accrued or arisen to, or received by the eligible investment division as a result of transfer of a security, other than that referred to in section 198, and held by such investment division; E = income by way of long-term capital gain referred to in section 210(1)[Table: Sl. No. 5], accrued or arisen to, or received by the eligible investment division, as a result of transfer of a security referred to in section 198, and held by such investment division. (2) Any expenditure incurred in relation to income referred to in A or B or C or D or E in su b-rule (1) shall not be allowed as a deduction from any other income under any provision of the Act, even if such expenditure has not been allowed as a deduction from income referred to in the said A or B or C or D or E. (3) The eligible investment divisio n shall furnish an annual statement of income, eligible for taxation under section 210(3), in Form No. 70 on or before the due date specified under section 263(1)(c). (4) The income of an eligible investment division referred to in section 210(1)[Table: S l. Nos. 1 to 5] shall not be eligible for tax rates specified therein unless the eligible investment division meets the requirement of sub -rule (3). (5) For the purposes of this rule,— (a) "eligible investment division" means an investment division of an o ffshore banking unit which fulfils the conditions specified in Schedule VI [Note 1(g)(ii)(A) and (B)] to the Act; (b) "investment division of an offshore banking unit" shall have the meaning assigned to it in Schedule VI [Note 1(b)] to the Act; (c) "securi ties" shall have the same meaning as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (d) ―specified fund" shall have the meaning assigned to it in Schedule VI [Note 1(g)(ii)] to the Act.