1. The Central Board of Direct Taxes (CBDT) notified the conditions for the pension fund for exemption under section 10(23FE) and substituted Form No. 10BBA.
2. The Board notified the Income-tax (11th Amendment) Rules, 2021 which seeks to further amend the Income-tax Rules, 1962.
3. In the Income-tax Rules, 1962, in rule 2DB,- after clause (ii), the proviso shall be inserted, which says, provided that the condition in clause (ii) shall be deemed to have been satisfied with respect to assets being administered or invested if the three conditions are satisfied.”
a) Firstly, the value of such assets is not more than ten percent. of the total value of the assets administered or invested by such funds.
b) Secondly, such assets are wholly owned directly or indirectly by the Government of a foreign country.
c) Thirdly, such assets vests in the Government of such foreign countries upon dissolution.”
4. After the proviso to clause (iii), the proviso shall be inserted, namely “Provided further that the provisions of clause (iii) shall not apply to earning from the assets referred to in the proviso of clause (ii) if the said earning are credited either to the account of the Government of that foreign country or to any other account designated by such Government so that no portion of the earnings inures any benefit to any private person”.
5. In the principal rules, in APPENDIX II, for Form No. 10BBA the following Form shall be substituted which is in respect of an application for notification under sub-clause (iv) of clause (c) of Explanation 1 to the clause (23FE) of section 10 of the Income-tax Act, 1961.