SCHEDULE VI
[See section 11]
INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF CERTAIN ELIGIBLE PERSONS IN INTERNATIONAL FINANCIAL SERVICES CENTRE OR HAVING INCOME THEREFROM
In computing the total income of a tax year of any eligible person, as mentioned in column C of the Table below, the income mentioned in column B of the said Table and the income as mentioned in savings clause shall not be included, subject to the conditions mentioned in column D of the said Table, and the expressions used in columns B to D of the said Table, shall have the meanings respectively assigned to them in the Notes below the said Table.
TABLE
(i) units held by non-resident (not being the permanent establishment of a non-resident in India); or
(ii) the investment division of offshore banking unit; and
(a) Such contract, instrument or derivative is entered into with an offshore banking unit of an International Financial Services Centre as referred to in section 147 or any Foreign Portfolio Investor being a unit of an International Financial Services Centre; and
(b) it fulfils such conditions, as may be prescribed.
(a) transfer of non- deliverable forward contracts or offshore derivative instruments or over-the-counter derivatives; or
(b) distribution of income on offshore derivative instruments or over-the-counter derivatives.
Any income received from--
(a) portfolio of securities or financial products or funds, managed or administered by any portfolio manager on behalf of the non-resident; or
(b) such activity carried out by such person, as may be notified by the Central Government.
(a) Such income is received in an account maintained with an Offshore Banking Unit in any International Financial Services Centre as referred to in section 147; and
(a) The domestic company—
(i) is engaged primarily in the business of leasing of an aircraft or a ship;
(ii) has commenced operations on or before the 31st March, 2030; and
(b) exclusion from total income shall be available for capital gains arising from the transfer of equity shares of such domestic company in a tax year falling within—
(i) ten tax years beginning with the tax year in which the domestic company has commenced operations; or
(ii) ten tax years beginning with the tax year commencing on the 1st April, 2023, where the period referred to in sub-clause (i) ends before the 1st April, 2033.
Note 1: For the purposes of Sl. Nos. 1 to 4,—
(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) "investment division of offshore banking unit" means an investment division of a banking unit of a non-resident located in an International Financial Services Centre as referred to in section 147 and which has commenced its operations on or before the 31st March, 2030;
(c) "manager" shall have the same meaning as assigned to it in regulation 2(1)(q) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(d) "permanent establishment" shall have the meaning assigned to it in section 173(c);
(e) "securities" shall have the same meaning as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and shall also include such other securities or instruments as may be notified by the Central Government in this behalf;
(f) "securitisation trust" shall have the meaning assigned to it in section 221(6)(d);
(g) "specified fund" means—
(i) 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 and located in International Financial Services Centres,—
(A) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated—
(I) under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(II) under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019); or
(B) which has been granted a certificate as a retail scheme or an Exchange Traded Fund, and satisfies the conditions laid down for such schemes or funds under the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019);
41[(C(41[(C) of which all the units other than the unit held by a sponsor or manager are held by non-residents except,—
(I) where such non-resident becomes resident under section 6(2) or (3) or (4) or (5) or (6) or (7) in any tax year subsequent to that tax year; and
(II) the number of units held by such resident unit holder or holders do not exceed 5% of the total units issued and shall fulfil such other conditions as may be prescribed; or]
(ii) investment division of an offshore banking unit, which has been—
(A) granted a certificate of registration as a Category-I foreign portfolio investor under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and which has commenced its operations on or before the 31st March, [2030]; and
(B) fulfils such conditions including maintenance of separate accounts for its investment division, as may be prescribed;
(h) "sponsor" shall have the same meaning as assigned to it in regulation 2(1)(w) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(i) "trust" means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any other law;
(j) "units" mean beneficial interest of an investor in the fund and shall include shares or partnership interests.
Note 2: For the purposes of Sl. No. 5,—
"Foreign Portfolio Investor" shall mean a person registered as per the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).
Note 3: For the purposes of Sl. Nos. 6, 8 and 11,—
(a) "aircraft" means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof;
(b) "ship" means a ship or an ocean vessel, engine of a ship or ocean vessel, or any part thereof.
Note 4: For the purposes of Sl. No. 7,—
"portfolio manager" shall have the same meaning as assigned to it in regulation 2(1)(z) of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019).
Note 5: For the purposes of Sl. No. 9,—
(a) "specified fund" shall have the same meaning as assigned to it in Note 1(g);
(b) "unit" means beneficial interest of an investor in the fund and shall include shares or partnership interests.
Note 6: For the purposes of Sl. No. 10,—
(a) "original fund", "relocation" and "resultant fund" shall have the meanings respectively assigned to them in section 70(2);
(b) "specified fund" shall have the meaning assigned to it in Note 1(g).
Note 7: For the purposes of Sl. No. 12,—
"Unit" shall have the same meaning as assigned to it in section 2(zc) of the Special Economic Zones Act, 2005 (28 of 2005).