Rule 140 gives the formulas for the part of a specified fund's capital gains and securities income attributable to units held by non-residents for section 210(2), and makes the concessional rates in section 210 conditional on filing Form No. 69.
140
Rules 2026 · Rule 140
Determination of income of a specified fund attributable to units held by non-residents under section 210(2)
Rules 131-200
Capital gains (sub-rule 1). A = B × C, where B is the income from transfer of the security (short-term or long-term capital gains under section 210(1) [Table: Sl. Nos. 2 to 5]) and C 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 acquisition to transfer of the security.
Income from securities (sub-rule 2). X = Y × Z, where Y is the income received in respect of securities (section 210(1) [Table: Sl. No. 1]) and Z is the ratio of assets under management held by non-resident unit holders to the total on the date of receipt of the income.
Filing and the condition (sub-rules 3 and 4). The fund furnishes an annual statement of income eligible for concessional taxation in Form No. 69 on or before the due date under section 263(1)(c). Without it, the attributable income is not eligible for the tax rates in section 210.
Definitions (sub-rule 5). "Assets under management" as in rule 139; "permanent establishment" is as in section 173(c); "securities", "specified fund" and "units" are as in Schedule VI [Note 1(e), 1(g)(i) and 1(j)].