CBDT notifies Tax Exemption to Income from Investment made in Netherland based Stichting Pensioenfonds ABP u/s 10(23FE) [Read Notification]

The Central Board of direct Taxes (CBDT), vide notification no. S.O. 4501(E) issued on 13th October 2023 has notified the Income Tax exemption to Netherland based Stichting Pensioenfonds ABP under Section 10(23FE) of the Income Tax Act, 1961. The notification came into force on 13th October 2023. Under the authority granted by sub-clause (iv) of clause (c) of Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, the Central Government now designates the pension fund, specifically Stichting Pensioenfonds ABP (PAN: AACCS2647E) (assessee), as the designated entity for the purposes of the aforementioned clause concerning eligible investments made in India. This designation applies to investments made on or after the publication of this notification in the Official Gazette but no later than March 31, 2024, provided that certain conditions are met. The conditions are: the assessee shall file return of income, for all the relevant previous years falling within the period beginning from the date in which the said investment has been made and ending on the date on which such investment is liquidated, on or before the due date specified for furnishing the return of income under subsection (1) of section 139 of the Act;the assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of compliance with the provisions of clause (23FE) of section 10 of the Act, during the financial year, from an accountant as defined in the Explanation below sub-section (2) of section 288 of the Act, as per the provisions of clause (vi) of rule 2DB of the Income–tax Rules, 1962;the assessee shall intimate the details in respect of each investment made by it in India during the quarter within one month from the end of the quarter in Form No. 10BBB, as per the provisions of clause (v) of rule 2DB of the Income-tax Rules, 1962;the assessee shall maintain a segmented account of income and expenditure in respect of such investment which qualifies for exemption under clause (23FE) of section 10 of the Act;the assessee shall continue to be regulated under the laws of the Government of the Netherlands;the assessee shall be responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be;the earnings and assets of the assessee should be used only for meeting statutory obligations and defined contributions for participants or beneficiaries of funds or plans referred to in clause (vi) and no portion ofthe earnings or assets of the pension fund inures any benefit to any other private person; barring anypayment made to creditors or depositors for loan or borrowing taken for the purposes other than for making investment in India;the assessee shall not have any loans or borrowings , directly or indirectly, for the purposes of making investment in India; andthe assessee shall not participate in the day to day operations of investee but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in the day to day operations of the investee. Violation of any of the conditions as stipulated in clause (23FE) of section 10 of the Act and this notification shall render the assessee ineligible for the tax exemption. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

CBDT notifies Tax Exemption to Income from Investment made in Netherland based Stichting Pensioenfonds ABP u/s 10(23FE) [Read Notification]

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