Rule 283 - Infrastructure investment threshold Operative rule

Schedule V Table 7 investment/exemption computation. 283. (1) For the purposes of Schedule V [Table: Sl. No. 7], the percentages in Notes 5(e), (f) and (g), and the exempt income in columns D(e), (f) and (g), shall be calculated as set out in this rule. (2) For an eligible Alternative Investment Fund, the relevant percentage is computed as (A+B+C)/D x 100, aggregating specified categories of eligible investment across financial years from 2021-2022 to the year preceding the relevant tax year (using only the first year's balance sheet for a fund's first year, and including investments receivable within three months of the relevant financial year). (3) For an eligible domestic company, the percentage is E/F x 100, where E is eligible infrastructure investment and F is total eligible investment (same first-year and three-month-receivable treatment as above). (4) For an eligible Non-Banking Financial Company, the percentage is G/H x 100, where G is eligible lending to infrastructure entities and H is total eligible lending (same first-year treatment). (5) The percentage requirement for tax year 2031-2032 onward is deemed satisfied if the 2030-2031 percentage was met. (6) Income is taxed in the hands of a unit holder as if the investment were made directly by that person, with exempt income computed via a further formula (I+J+K+L) reflecting the specified components. (7)-(8) Exempt income for an eligible domestic company is (M x N)/O (M = income, N = eligible infrastructure investment, O = total investment); for an eligible Non-Banking Financial Company it is (P x Q)/R (P = income, Q = eligible lending, R = total lending). (9)-(11) Every eligible entity must furnish Form No. 177 annually, detailing funds received from specified persons, filed electronically (digital signature or verification code, verified by the authorised return-verifying officer) by the section 263(1)(c) due date for the year of first receipt and every year thereafter until the investment is returned. (12) This rule defines "specified person," "eligible infrastructure entity," "eligible Alternative Investment Fund," "eligible domestic company," "eligible Non-Banking Financial Company," "eligible InvIT," "balance sheet," "eligible investment," "eligible lending," "investment," and "relevant tax year" - the precise wording of each definition and of the sub-rule (2), (6), (7) and (8) formulas' individual components should be checked against the official consolidated text given this rule's technical density.