Rule 140 - Determination of income of specified fund attributable to units held by non-residents

Determination of income of a specified fund attributable to units held by non-residents under section 210(2). 140. (1) For the purposes of section 210(2), income from short-term or long-term capital gains referred to in section 210(1) [Table: Sl. Nos. 2 to 5] attributable to units held by a non-resident (not being the permanent establishment of a non-resident in India) shall be computed as A = B x C, where A = the income attributable to units held by such non-resident; B = the income arising from transfer of the security; and C = the ratio of the aggregate of daily "assets under management" of the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the aggregate of daily total "assets under management" of the specified fund, from the date of acquisition to the date of transfer. (2) For the purposes of section 210(2), income from securities referred to in section 210(1) [Table: Sl. No. 1] attributable to units held by such non-resident shall be computed as X = Y x Z, where X = the income so attributable; Y = the income received in respect of the securities; and Z = the ratio of the "assets under management" in the specified fund held by non-resident unit holders (not being the permanent establishment of a non-resident in India) to the total "assets under management" of the specified fund, as on the date of receipt of such income. (3) The specified fund shall furnish an annual statement of income eligible for concessional taxation in Form No. 69, on or before the due date specified under section 263(1)(c). (4) Income under section 210 shall be eligible for the specified concessional tax rates only where the specified fund complies with sub-rule (3). (5) For the purposes of this rule— (a) "assets under management" means the closing balance of the value of assets or investments of the specified fund on a particular date; (b) "permanent establishment" has the meaning assigned to it in section 173(c); (c) "securities" has the meaning assigned to it in Schedule VI [Note 1(e)]; (d) "specified fund" has the meaning assigned to it in Schedule VI [Note 1(g)(i)]; and (e) "unit" has the meaning assigned to it in Schedule VI [Note 1(j)].