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June 2012

Guidelines for setting up an Infrastructure Debt Fund u/s.10(47) — Notification No. 16/2012, dated 30-4-2012.

By Pinky Shah, Sonalee Godbole, Chartered Accountants
Reading Time 1 mins
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A new Rule 2F has been inserted vide Income-tax (Fifth Amendment) Rules, 2012 prescribing guidelines and conditions for setting up an infrastructure debt fund for the purpose of claiming exemption u/s.10(47) of the Act. These conditions inter alia provide as under:

A new Rule 2F has been inserted vide Income-tax (Fifth Amendment) Rules, 2012 prescribing guidelines and conditions for setting up an infrastructure debt fund for the purpose of claiming exemption u/s.10(47) of the Act. These conditions inter alia provide as under:
(a) The fund shall be set up as a NBFC as per the Guidelines issued by RBI.
(b) The fund shall invest in Public Private infrastructure projects as prescribed.
(c) The fund shall issue Rupee denominated Bonds as well as Foreign Currency Bonds in accordance with guidelines issued by RBI and regulations under FEMA.
(d) Restrictions are imposed on investment by the fund as well as lock-in period for the investor.

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