CBDT notifies pension fund CPPIB India Private Holdings Inc

CBDT notifies pension fund CPPIB India Private Holdings Inc

The Central Commission for Direct Taxes (CBDT) Notifies pension fund CPPIB India Private Holdings Inc. via issuance of notification.

The notification stated, “In exercising the powers conferred by sub-clause (iv) of clause (c) of explanation 1 of clause (23FE) of section 10 of the Income Tax Act 1961 (43 of 1961) (hereinafter referred to as the Act), the Central Government hereby specifies the Pension Fund, namely, CPPIB India Private Holdings Inc. (PAN: AAICC2378J), (hereinafter referred to as the Assessed) as the specified person for the purposes of the said clause in respect of eligible investments made by it in India on or after the date of publication of this notification in the Official Gazette but not later than 31 March 2024 (hereinafter referred to as such investments ) subject to compliance with the following conditions, namely:-“

(i) the assessee must file a tax return, for all relevant previous years falling within the period commencing on the date on which such investment was made and ending on the date on which such investment is liquidated, no later than on the due date specified for furnishing the tax return under subsection (1) of section 139 of the Act;

(ii) the assessee shall furnish with this statement a certificate on Form No. 10BBC as to compliance with the provisions of clause (23FE) of section 10 of the Act, during the financial year, of an accountant as defined in the explanation below in subsection (2) of section 288 of the Act, in accordance with the provisions of clause (vi) of rule 2DB of the Income Tax Rules 1962;

(iii) the assessee must give details of each investment he has made in India during the quarter within one month of the end of the quarter on Form No. 10BBB in accordance with the provisions of the clause (v) of rule 2DB of the Income Tax Rules, 1962;

(iv) the assessee must maintain a segmented account of the income and expenditure relating to that investment which qualifies for exemption under clause (23FE) of section 10 of the Act;

(v) the assessee continues to be governed by the laws of the Government of Canada;

(vi) the assessee is responsible for the administration or investment of assets to meet legal obligations and defined contributions to one or more funds or plans established to provide retirement, social security, employment, disability, death or other similar compensation to participants or beneficiaries of such funds or schemes, as the case may be;

(vii) the income and assets of the person being assessed shall only be used to meet the legal obligations and defined contributions for the participants or beneficiaries of the funds or plans referred to in paragraph (vi) and no part of the income or of the assets of the pension fund does not affect the benefit of any other private person; prohibiting any payment made to creditors or depositors for a loan or borrowing [as defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act] taken for purposes other than investment in India;

(viii) the assessee must not have any loans or borrowings [as defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act], directly or indirectly, for the purpose of making investments in India; and

(ix) the assessee must not be involved in the day-to-day operations of the issuing company [as defined in clause (i) of Explanation 2 to clause (23FE) of section 10 of the Act] but the oversight mechanism to protect the investment with the investee, including the right to appoint directors or an executive director, should not be considered participation in the day-to-day operations of the investee.

2. Violation of any of the conditions as stated in said clause (23FE) of Section 10 of the Act and such notification shall render the assessee ineligible for tax exemption.

To read the notification Download the PDF below:

Dolores W. Simon