Notification No. 13/2021, dated 09-03-2021
Section 9A(3)(m) of the Income-tax Act, 1961 provides that payment of remuneration by an eligible investment fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf, shall not be less than the amount calculated in such manner as may be prescribed.
Such manners have been prescribed under Rule 10V(12) of the Income-tax Rules, 1962. Rule 10V also provides that funds may seek the Board's approval in case the amount of remuneration is lower than the amount so prescribed.
The Central Board of Direct Taxes (CBDT) Vide Income-tax (2nd Amendment) Rules), 2021 amended Rule 10V.Two new provisions have been added in the Rule 10V(12) which provides manners for computation of remuneration payable to the fund manager.
It has been provided that, provisions of sub-rules (3) to (12) of rule 10VA shall, mutatis mutandis, apply to the application made by assessee before the CBDT seeking lower remuneration payable to fund manager. Sub-rules (3) to (12) of rule 10VA deals with manner for making application and procedures to be followed by board thereafter.