The Central Board of Direct Taxes (CBDT) notified Amendment to Rule 10V for Computation of Remuneration payable to Fund Managers.
The Board notified the Income-tax (2nd Amendment) Rules, 2021 which seeks to further amend Income-tax Rules, 1962.
In the Income-tax Rules, 1962, in rule 10V, in sub-rule (12), after the second proviso and before the Explanation, the two provisos shall be inserted.
Firstly, “Provided also that the provisions of sub-rules (3) to (12) of rule 10VA shall, mutatis mutandis, apply to the application made under the second proviso as they apply to application made under sub- rule (2) of the said rule,” the notification said.
Secondly, “Provided also that the provisions of sub-rule (3) of rule 10VA shall not apply to an application made under the second proviso, if it is for the previous year beginning on the 1st day of April, 2021, and made on or before the 1st day of February, 2021,” the CBDT notified.
Sub-rule (12) of Rule 10V provides for the amount of remuneration to be paid by the fund to a fund manager. Second provision of the said sub-rule provides that the fund may seek Board’s approval in case where the amount of remuneration is lower than the amount so prescribed.Subscribe Taxscan AdFree to view the Judgment