Industry players lobby for relaxation of offshore fund taxation rules

Industry players are lobbying for relaxation of rules under Section 9A of the Income Tax Act in the upcoming Budget.

Section 9A, introduced on April 1, 2016, exempts funds from getting taxed in India. Only a fund manager’s income or management fee will be subject to tax.

According to current norms, the total investment of a person resident in India, whether directly or indirectly, shall not be more than 5 per cent of the fund corpus. The percentage of resident money has to be specified by way of a declaration to the government as well.

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