Amount of remuneration prescribed under section 9A(3)(m) of the Income-tax Act, 1961

Finance (No 2) Act, 2019, inter alia, amended clause (m) of sub-section (3) of section 9A of the Income-tax Act, 1961 (the Act) w.e.f. 01.04.2019 to provide for payment ofremuneration by an eligible investment fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf to be not less than the amount calculated in such manner as may
be prescribed.

2. Accordingly, rule 10V of the Income-tax Rules, 1962 (the Rules) has been amended, w.e.f. 01.04.2019, vide Notification No 29/2020 dated 27.05.2020 by way of, inter alia, insertion of subrules (12) and (13) therein. Sub-rule (12) provides for the amount of remuneration to be paid by the fund to a fund manager. 2nd proviso of the said sub-rule provides that the fund may seek Board's approval in case where the amount of remuneration is lower than the amount so prescribed.

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