MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 25th January, 2022

(INCOME-TAX)

S.O. 345(E).—In exercise of powers conferred by sub-clause (vi) of clause (b) of the Explanation to clause
(23FE) of section 10 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) the Central Government hereby
makes the following amendment in the notification of the Government of India, Ministry of Finance (Department of
Revenue), Number 89 of 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii),
vide number S.O. 3952(E), dated the 2nd November, 2020, namely:-

In the said notification,-

(I) for clauses (vii), (viii), (ix), (x), (xi) and (xii), the following clauses shall be substituted, namely:-

“(vii) the earnings of the assessee shall be credited either to the account of the Government of Abu Dhabi or
to any other account designated by that Government so that no portion of the earnings inures to any private
person barring any payment made to creditors or depositors for loan or borrowing [as defined in sub-clause
(a) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act] taken for the purposes other
than for making investment in India;
6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]

(viii) the assessee shall not have any loans or borrowings [as defined in sub-clause(a) of clause (ii) of
Explanation 2 to clause (23FE) of section 10 of the Act] , directly or indirectly, for the purposes of making
investment in India;

(ix) the asset of the assessee shall vest in the Government of Abu Dhabi upon dissolution barring any
payment made to creditors or depositors for loan or borrowing taken for the purposes other than for making
investment in India;

(x) the assessee shall not participate in the day to day operations of investee (as defined in clause (i) of
Explanation 2 clause (23FE) of section 10 of the Act) but the monitoring mechanism to protect the
investment with the investee including the right to appoint directors or executive director shall not be
considered as participation in the day to day operations of the investee.”;

(II) for the Annexure, the following Annexure shall be substituted, namely:-

“ANNEXURE

Audit report to be filed by the Sovereign Wealth Fund claiming exemption under clause (23FE) of section10 of
the Income-tax Act, 1961

Part I

*I/we report that the statutory audit of M/s…………………… (Name and address of the assessee with
Permanent Account Number or Aadhaar Number), the particulars of which are given in Part II was conducted by
*me/us/M/s.…………………………………………..……….as per the requirement under the Notification
No…../……dated………published in the Official Gazette on…….......

2. In *my/our opinion and to the best of *my/our information and according to examination of books of account

including other relevant documents and explanations given to *me/us, it is certified that the assessee *has/has not

complied with the conditions as laid down under clause (23FE) of section 10 of theIncome-taxAct,1961 and those

provided in the said notification specifying the assessee being the Sovereign Wealth Fund as specified person for the

purposes of claiming exemption under the said clause(23FE).

2.1 *The conditions not complied with by the assessee are as under:-

(a)…………………………….…………………………….………………………………

(b)…………………………….…………………………….………………………………

3. In *my/our opinion and to the best of *my/our information and according to examination of books of account

including other relevant documents and explanations given to *me/us, the particulars given in the Part II are true and

correct subject to the following observations/qualifications, if any, namely:-

(a)…………………………….…………………………….………………………………

(b)…………………………….…………………………….………………………………

Part II

1. Name of the Assessee :

2. PAN/AADHAAR :

3. Previous Year :

4. Total Income of the Assessee during the previous year

5. Total amount of income eligible for exemption under clause (23FE) of section 10 of the Income-tax Act,
1961 (as per details in column 11 of table at item no. 6):

6. The opening balance (i.e. the closing balance as on the last date of the preceding financial year) of the
investment made which is eligible for exemption under clause (23FE) of section 10 is ______________(in
rupees) and details of the investment by the Sovereign Wealth Fund (SWF) during the period are as under:
[भाग II—खण्ड 3(ii)] भारत का राजपत्र : असाधारण 7

Sl. Date of Amount of Nature Nature Amount of Details of the entity in which Investment Amount of
of income on made income
No. investment investment of investment which is
income during the
investment (instruc- Nature Name PAN In case if nature eligible for
tion 5) year (instruction of entity code is exemption
(Instruc- 3/4/5, whether under clause
(5) (6) 6) the entity has (23FE) of
tion 4) made minimum section 10
investment of
50 or75 or 90 (Attach
percent as calculation
required in item sheet as per
(c) or (d) or (e)
of sub-clause relevant
(iii) of clause rules)
(23FE) of
section 10 (11)
(Attach
calculation
sheet as per
relevant rules)

(1) (2) (3) (4) (7) (8) (9) (10)

1.

2.

Total

7. *the SWF has not sold any of the investments made for the purposes of exemption under clause (23FE) of
section 10 of the Income-tax Act, 1961 before the expiry of three years from the date on which the investment was
made in respect of the said exemption/the SWF has sold certain investments made for the purposes of exemption
under clause (23FE) of section 10 of the Income-tax Act, 1961 before the expiry of three years from the date on
which the investment was made in respect of the said exemption, the details of which are as under:

Sl. Date of Nature of Nature of income Amount of income Details of the entity in which Date

No. investment investment (instruction 5) on investment Investment made of

(Instruction 4) during the year Nature of sale
Name PAN

entity

(instruction 6)

(1) (2) (3) (4) (5) (6) (7) (8) (9)

1.

2.

Total

8. The SWF satisfies all the conditions required for the purposes of exemption under clause (23FE) of section
10 of the Income-tax Act, 1961, that is, -

a) Whether the government of foreign country wholly owns and controls the SWF, directly or Yes/No
indirectly

b) Mention the name of the government of foreign country which owns and controls the SWF,
directly or indirectly

c) Whether the government of foreign country owns and controls the SWF, directly or indirectly Directly/
Indirectly

d) In case if government of foreign country owns and controls the SWF, indirectly give details of
the chain of ownership

e) Name of the law under which the SWF is set up and regulated
8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]

f) Whether the earnings of the said fund are credited either to the account of the Government of Yes/No
that foreign country or to any other account designated by that Government so that no portion
of the earnings inures any benefit to any private person barring any payment made to creditors
or depositors for loan taken or borrowing for the purposes other than for making investment in
India.

g) Whether the asset of the said fund vests in the Government of such foreign country upon Yes/No
dissolution barring any payment made to creditors or depositors for loan taken or borrowing
for the purposes other than for making investment in India.

h) If answer to (f) or (g) is No, then provide the following details:
(i)Name of such private person
(ii)Amount of benefit provided during the year

i) Whether it participates in the day to day operations of any of the investee, as defined in Yes/No
Explanation 3 to clause (23FE) of section 10, barring any monitoring mechanism to protect the
investment with the investee including the right to appoint directors or executive director

j) If answer to (i) is yes, then provide the following details:
(i) Name of such investee
(ii) PAN of the investee

(iii) Amount of investment in such investee at the end of the year

k) Whether it has complied with the requirement of intimation of the details of investment made Yes/No
by it in India in Form No. II issued vide circular No 15/2020 dated 22.07.2020

l) Whether it has loans or borrowings, as defined in Explanation 2 to clause (23FE) of section 10, Yes/No
directly or indirectly, for the purposes of making investment in India

m) If answer to (l) is yes, then provide the following details:
(i) Name of the person from whom such loan or borrowing has been taken
(ii) Amount of loan or borrowing at the beginning of the year
(iii) Amount of loan or borrowing received during the year
(iv) Amount of loan or borrowing repaid during the year
(v) Amount of loan or borrowing at the end of the year

n) Whether separate segmented account is maintained for income and investment in respect of
investment which qualifies for exemption under clause (23FE) of section 10 of the Act

Place:……………
Date:……………

(Signature and stamp/Seal of the signatory)
Name of the signatory …………………….
Full address ……………………………….
Membership No……………………………
UDIN………………………..……………..

Instructions: 1. *Delete whichever is not applicable.

2. This certificate is to be given by an accountant as defined in the Explanation below sub-section (2) of section 288 of
the Income-tax Act, 1961.

3. An “investee” shall have the same meaning as in claues (i) of Explanation 2 to clause (23FE) of section 10 of the
Act and “Loan and borowing” shall have the same meaning as in sub-clause(b) of clause (ii) of Explanation 2 to
clause (23FE) of section 10 of the Act.
[भाग II—खण्ड 3(ii)] भारत का राजपत्र : असाधारण 9

4. One of the following codes is to be selected:

Nature of Investment Code
Debt 1
Equity 2
3
Preference Shares 4
Others (Please specify)

5. One of the following codes is to be selected:

Nature of Income Code
Interest 1
Dividend 2
3
Capital Gains 4
Others

6. One of the following codes is to be selected:

Nature of entity in which investment is made Code

Business Trust referred to in item (a) of sub-clause (iii) of clause (23FE) of section 10 1

Company or enterprise or entity referred to in item (b) of sub-clause (iii) of clause (23FE) of section 10 2

Alternative Investment Fund referred to in item (c) of sub-clause (iii) of clause (23FE) of section 10 3

Domestic company referred to in item (d) of sub-clause (iii) of clause (23FE) of section 10 4

Infrastructure Finance Company/Infrastructure Debt Fund-NBFC referred to in item (e) of sub-clause 5 .”.
(iii) of clause (23FE) of section 10

[Notification No. 11/2022/F. No. 370133/16/2020-TPL]

NEHA SAHAY, Under Secy.

Note : The Principal notification was published in the Gazette of India, Extraordinary, Part II Section 3 sub-section (ii) dated
the 2nd November, 2020 vide number S.O.3952 (E) dated 2nd November, 2020.

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and Published by the Controller of Publications, Delhi-110054.