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Vistra India Update 379

July 1 to July 15 2019

INCOME TAX

Clarification regarding taxability of income earned by a non-resident investor from off-shore investments routed through an Alternate Investment Fund

As section 115UB(1) of the Income tax Act 1961 (Act) provides that the investments made by Category I or Category II AIFs are deemed to have been made by the investor directly, government of India has now clarified that any income in the hands of the non-resident investor from off-shore investments routed through the Category I or Category II AIF, being a deemed direct investment outside India by the non-resident investor is not taxable in India under section 5(2) of the Act.

It is further clarified that loss arising from the off-shore investment relating to non-resident investor, being an exempt loss, shall not be allowed to be set-off or carried-forward and set off against the income of the Category I or Category II AIF.

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COMPANY LAW

Companies (Significant Beneficial Owners) 2nd Amendment Rues, 2019

Ministry of Corporate Affairs (MCA) has amended Companies (Significant Beneficial Owners) Rules, 2018 to substitute new format of  Form BEN-2. 

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