The CBDT has released the Income-tax (Seventeenth Amendment), Rules, 2022 to change the Income-tax Rules, 1962 (the IT Rules) in the following ways:
Income attributable to units held by non-residents in a specified fund is not exempt unless the specified fund produces an annual statement of exempt income in a specific way, according to new Rule21AI(2A) of the IT Rules.
Rule 21AIA of the IT Rules is added to identify certain additional conditions that must be met by a specific fund.
The IT Rules have been amended to add new Rule 21AJ(3A) notifying that the income of a specified fund attributable to units held by a non-resident is not eligible for concessional tax rates unless the fund files the annual statement of income eligible for concessional taxation in Form No. 10-IH in the prescribed manner.
The IT Rules have been amended to add new Rule 21AJA(3A) stating that the income of a specified fund attributable to an eligible investment division is not exempt unless the fund files an annual statement of exempt income in Form No. 10-IK and an audit report in Form 10-IL.