I-T dept eases norms further to woo foreign fund managers

Even after the Budget amending the norms, they didn't shift due to imposition of stiff conditions

The income tax (I-T) department has further relaxed conditions for offshore funds from 121 countries to encourage overseas fund managers shift base to India. The move — aimed at funds run by Citi, Morgan Stanley and JP Morgan, among others — would cover Mauritius and Singapore, but not Hong Kong. 

The 2015-16 Budget had made some exemptions by amending the permanent establishment (PE) norms. Mere presence of a fund manager in India did not make it a PE of the offshore fund. This exempted these fund managers from corporate tax even if located in India. They only had to pay