CBDT notifies Income-tax (11th Amendment) Rules, 2021.

The Central Board of Direct Taxes on 26th April 2021 has published the Income-tax (11th Amendment) Rules, 2021 to further amend the Income-tax Rules, 1962.

The Amendment is brought under rule 2DB which deals with other conditions to be followed by the pension fund in which the pension fund is responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be.

Provided that the above condition shall be deemed to have been satisfied with respect to assets being administered or invested, if the following conditions are satisfied; namely:-

(a) value of such assets is not more than ten per cent. of the total value of the assets administered or invested by such fund;

(b) such assets are wholly owned directly or indirectly by the Government of a foreign country; and

 (c) such assets vests in the Government of such foreign country upon dissolution.

Further under Rule 2DB(iii) the earnings and assets of the pension fund are used only for meeting statutory obligations and defined contributions for participants or beneficiaries of funds or plans and no portion of the earnings or assets of the pension fund inures any benefit to any other private person;

“Provided further that the above 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.


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