Income Tax Notification No. 63/2021

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 13th May, 2021
(INCOME-TAX)

S.O. 1853(E).—In exercise of powers conferred by sub-clause (vi) of clause (b) of the Explanation 1 to
clause (23FE) of section 10 of the Income-tax Act, 1961 ( 43 of 1961) (hereinafter referred to as the “Act”), the
Central Government hereby specifies the sovereign wealth fund, namely, the Ministry of Economy and Finance (of the
Republic of Korea), (hereinafter referred to as “the assessee”) as the specified person for the purposes of the said
clause in respect of the investment made by it in India on or after the date of publication of this notification in the
Official Gazette but on or before the 31st day of March, 2024 (hereinafter referred to as “said investments”) subject to
the fulfilment of the following conditions, namely:-
(i) 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 sub-section (1) of section 139 of the Act;
(ii) the assessee shall get its books of account audited for the previous years referred to in clause (i) by any
accountant specified in the Explanation below sub-section (2) of section 288 of the Act and furnish the
Audit Report in the format annexed as Annexure to this notification herewith at least one month prior to
the due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act;
(iii) the assessee shall furnish a quarterly statement within one month from the end of each quarter
electronically in Form II as annexed to the Circular No 15 of 2020, dated the 22nd July, 2020 with F. No.
8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
370142/26/2020-TPL, issued by the Ministry of Finance, Department of Revenue, Central Board of
Direct Taxes (Tax Policy and Legislation Division), in respect of each investment made by it during the
said quarter;
(iv) 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;
(v) the assessee shall continue to be owned and controlled, directly or indirectly, by the Republic of Korea
and at no point of time any other person should have any ownership or control, directly or indirectly, in
the assessee;
(vi) the assessee shall continue to be regulated under the law of the Republic of Korea;
(vii) the earnings of the assessee shall be credited either to the account of the Republic of Korea or to any other
account designated by that Government so that no portion of the earnings inures to any private person
barring any payment made to creditors or depositors for loan taken or borrowing [as defined in sub-clause
(a) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act] taken for the purposes other
than for making investment in India;
(viii) the assessee shall not have any loans or borrowings [as defined in sub-clause (a) of clause (ii) of
Explanation 2 to clause (23FE) of section 10 of the Act], directly or indirectly, for the purposes of making
investment in India;
(ix) the asset of the assessee shall vest in the Republic of Korea upon dissolution barring any payment made to
creditors or depositors for loan taken or borrowing for the purposes other than for making investment in
India; and
(x) the assessee shall not participate in the day to day operations of investee [as defined in clause (i) of
Explanation 2 to clause (23FE) of section 10 of the Act] 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.
2. Violation of any of the conditions as stipulated in the said clause (23FE) of section 10 of the Act and this
notification shall render the assessee ineligible for the tax exemption.
3. This notification shall come into force from the date of its publication in the Official Gazette.
ANNEXURE
Audit report to be filed by the Sovereign Wealth Fund claiming exemption under clause (23FE) of section 10 of
the Income -tax Act, 1961
Part I
*I/we report that the statutory audit of M/s. ………………..…………………. (Name and address of the
assessee with Permanent Account Number or Aadhaar Number), the particulars of which are given in Part II was
conducted by *me/ us/ M/s. …………………………………………..………. as per the requirement under the
Notification No …../…… dated ……… published in the Official Gazette on ……….
2. In *my/ our opinion and to the best of *my/ our information and according to examination of books of
account including other relevant documents and explanations given to *me/us, it is certified that the assessee *has/ has
not complied with the conditions as laid down under clause (23FE) of section 10 of the Act and those provided in the
said notification specifying the assessee being the Sovereign Wealth Fund as specified person for the purposes of
claiming exemption under the said clause (23FE).
2.1 *The conditions not complied with by the assessee are as under:-
(a) …………………………….…………………………….………………………………
(b) …………………………….…………………………….………………………………
3. In *my/our opinion and to the best of *my/ our information and according to examination of books of
account including other relevant documents and explanations given to *me/us, the particulars given in the Part II are
true and correct subject to the following observations/qualifications, if any, namely:-
(a) …………………………….…………………………….………………………………
(b) …………………………….…………………………….………………………………

Part II
1. Name of the Assessee :
2. PAN/ AADHAAR :
3. Previous Year :
4. Total Income of the Assessee during the previous year
5. Total amount of income eligible for exemption under clause
(23FE) of section 10 of the Act (as per details in column 11 of
table
at item no.6) :
6. The opening balance (i.e. the closing balance as on the last date of the preceding financial year) of the
investment made which is eligible for exemption under clause (23FE) of section 10 is ______________(in
rupees) and details of the investment by the Sovereign Wealth Fund (SWF) during the period are as under:

Download full notification – notification_63_2021

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