Schedule I Conditions for Certain Activities Not to Constitute Business Connection in India
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"SCHEDULE I
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"[See section 9(12)]
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"CONDITIONS FOR CERTAIN ACTIVITIES NOT TO CONSTITUTE BUSINESS CONNECTION IN INDIA
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"1.(1) The eligible investment fund referred to in section 9(12) shall be a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit, and fulfils the following conditions:—
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(a) the fund is not a person resident in India;
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(b) the fund is—
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(i) a resident of a country or a specified territory with which an agreement referred to in section 159(1) or (2) has been entered into; or
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(ii) established or incorporated or registered in a country or a specified territory as the Central Government may, by notification, specify;
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(c) the aggregate participation or investment in the fund, directly by persons resident in India, does not exceed 5% of the corpus of the fund as on the 1st April and the 1st October of the tax year, and—
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(i) for the purposes of calculation of such aggregate participation or investment in the fund, any contribution up to twenty-five crore rupees made by the eligible fund manager during the first three years of operation of the fund shall not be taken into account; or
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(ii) where the said aggregate participation or investment in the fund exceeds 5% on the 1st April or the 1st October of the tax year, the condition mentioned in this clause shall be deemed to be satisfied, if it is satisfied within four months of the 1st April or the 1st October, as the case may be, of such tax year;
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(d) the fund shall not carry on or control and manage, directly or indirectly, any business in India; and
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(e) no person acting on behalf of the fund engages in any activity which constitutes a business connection in India other than the activities undertaken by the eligible fund manager on its behalf.
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(2) The eligible fund manager referred to in section 9(12), in respect of an eligible investment fund, shall be any person who is engaged in the activity of fund management and fulfils the following conditions:—
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(a) the person is not an employee of the eligible investment fund or a connected person of such fund;
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(b) the person is registered as a fund manager or an investment advisor in accordance with the specified regulations;
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(c) the person is acting in the ordinary course of his business as a fund manager; and
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(d) the person along with his connected persons shall not be entitled, directly or indirectly, to more than 20% of the profits accruing or arising to the eligible investment fund from the transactions carried out by the fund through the fund manager.
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(3) Every eligible investment fund shall, in respect of its activities in a tax year, furnish within ninety days from the end of the tax year,––
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(a) a statement in the prescribed form to the prescribed income-tax authority containing information relating to the fulfilment of the conditions specified in this Schedule; and
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(b) provide such other relevant information or documents, as may be prescribed.
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(4) The provisions of this Schedule shall apply as per such guidelines and in such manner, as the Board may prescribe in this behalf.
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"2. In this Schedule, the expressions—
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(a) “connected person” shall have the meaning assigned to it in section 184(5);
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(b) “corpus” means the total amount of funds raised for the purpose of investment by the eligible investment fund as on a particular date;
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(c) “specified regulations” means––
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(i) the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013; or
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(ii) the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020; or
Schedule I substituted by Taxation and Other Laws (Amendment) Act, 2026, s. 3, dated 17th August, 2026, with effect from 1 April 2026. Earlier read: "Schedule I"(iii) such other regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), as may be notified in this behalf.