Rule 143 gives the formula for the income of a specified fund that is an offshore banking unit's investment division under section 210(3) — the sum of five income categories — and conditions the section 210 rates on filing Form No. 70.
143
Rules 2026 · Rule 143
Determination of income of a specified fund attributable to investment division of an offshore banking unit under section 210(3)
Rules 131-200
The formula (sub-rule 1). A + B + C + D + E, where A is income from securities (section 210(1) [Table: Sl. No. 1]); B is short-term capital gain from transfer of a security other than one referred to in section 196 (Sl. No. 2); C is short-term capital gain from transfer of a security referred to in section 196 (Sl. No. 3); D is long-term capital gain from transfer of a security other than one referred to in section 198 (Sl. No. 4); and E is long-term capital gain from transfer of a security referred to in section 198 (Sl. No. 5) — in each case accruing to or received by the eligible investment division.
Expenditure (sub-rule 2). Expenditure related to A to E is not allowed as a deduction from any other income, even if not allowed against those incomes.
Filing and the condition (sub-rules 3 and 4). An annual statement of income eligible for taxation under section 210(3) in Form No. 70 by the section 263(1)(c) due date; without it the income does not get the section 210(1) rates.
Definitions (sub-rule 5). An "eligible investment division" is one that fulfils the conditions in Schedule VI [Note 1(g)(ii)(A) and (B)]; "securities" is as in section 2(h) of the Securities Contracts (Regulation) Act, 1956.