Rule 285 gives the formula (A × B) / C for the capital gains of a specified fund exempt under Schedule VI [Table: Sl. No. 10] on transfer of shares received in a relocation from the original fund, by the non-resident share of assets under management, and makes the exemption nil unless Form No. 178 is filed with an accountant's certificate in Form No. 179.
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Rules 2026 · Rule 285
Computation of exempt income in nature of capital gains in connection with relocation of original fund, etc
Rules 261-310
The formula (sub-rule 1). Where the specified fund files Form No. 178, the exempt income is (A × B) / C, where A is capital gains from transfer of shares of an Indian-resident company that the specified fund (as resultant fund) received in relocation from the original fund or its wholly owned special purpose vehicle, and that would not have been chargeable had the relocation not taken place; B is the aggregate daily assets under management held by non-resident unit holders (other than a permanent establishment in India) from acquisition to transfer of the share; and C is the aggregate daily total assets under management over the same period. If Form No. 178 is not filed, the exempt income is nil.
Filing and certification (sub-rules 2 and 3). The fund furnishes an annual statement of exempt income in Form No. 178 electronically under digital signature by the due date, verified as indicated, and has it certified by an accountant under section 515(3)(b); the accountant furnishes the certificate in Form No. 179 electronically under digital signature by the specified date, which is one month before the due date.
Definitions (sub-rule 4). "Assets under management" is the closing balance of the value of assets or investments on a particular date; other terms are as in Schedule VI and section 173(c).