Computation of exempt income of specified fund attributable to units held by non-resident under Schedule VI [Table: Sl. Nos. 1 to 4] to Act

The formula (sub-rule 1). (A × r1) + (B × r2) + (C × r3) + (D × r4), where:

• A is income from transfer of a capital asset referred to in section 70(1)(r) on a recognised stock exchange in an International Financial Services Centre where the consideration is paid or payable in convertible foreign exchange (Schedule VI Table Sl. No. 1); r1 is the ratio of the aggregate daily "assets under management" held by non-resident unit holders (other than a permanent establishment in India) to the aggregate daily total, from the date of acquisition to the date of transfer;
• B is income from transfer of securities other than shares in a company resident in India (Sl. No. 2); r2 is the same ratio from acquisition of the security to its transfer;
• C is income from securities issued by a non-resident (not a permanent establishment in India) which otherwise does not accrue or arise in India (Sl. No. 3); r3 is the ratio of assets under management held by non-resident unit holders to the total, on the date of receipt of the income; and
• D is income from a securitisation trust chargeable under the head "Profits and gains of business or profession" (Sl. No. 4); r4 is the same ratio on the date of receipt.

Filing and the condition (sub-rules 2 and 3). The specified fund furnishes an annual statement of exempt income in Form No. 68, electronically under digital signature, on or before the due date under section 263(1)(c), verified as the form indicates. Income attributable to units held by a non-resident is not exempt under section 11(1) read with Schedule VI [Table: Sl. Nos. 1 to 4] unless the fund complies.

Definitions (sub-rule 4). "Assets under management" is the closing balance of the value of assets or investments of the fund on a particular date. "International Financial Services Centre" is as in section 2(q) of the Special Economic Zones Act, 2005; "permanent establishment", "securities", "specified fund" and "unit" are as in Note 1 below Schedule VI.