Section - 10(4D) (of Income Tax Act, 1961), Income-tax Act.

Any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause (viiab) of section 47 (of Income Tax Act, 1961), 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, to the extent such income accrued or arisen to, or is received in respect of units held by a non-resident.

Explanation.—For the purposes of this clause, the expression—

(a) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder;

(b) "manager" shall have the meaning assigned to it in clause (q) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(ba)  "permanent establishment" shall have the meaning assigned to it in clause (iiia) of section 92F (of Income Tax Act, 1961);

(bb)  "securities" shall have the same meaning as assigned to it in clause (h) of section 2 (of Income Tax Act, 1961) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956)3a and shall also include such other securities or instruments as may be notified by the Central Government in the Official Gazette in this behalf;

(bc)  "securitisation trust" shall have the meaning assigned to it in clause (d) of the Explanation to section 115TCA (of Income Tax Act, 1961);

(c) "specified fund" means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,—

(i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(ii) which is located in any International Financial Services Centre;



(iii) of which all the units are held by non-residents other than unit held by a sponsor or manager;

(d) "sponsor" shall have the meaning assigned to it in clause (w) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(e) "trust" means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any other law for the time being in force;



(f) "unit" means beneficial interest of an investor in the fund and shall include shares or partnership interests;