CBDT relaxes the requirement to pay prescribed remuneration to investment fund managers

The Central Board of Direct Taxes vide circular dated 15, January , 2021 has relaxed the requirement to pay the amount of remuneration prescribed under section 9A(3)(m) of the Income-tax Act, 196 by an eligible investment fund to an eligible fund manager in respect of fund management activity undertaken by him. CBDT has provided that for the financial years 2019-20 and 2020- 21, in cases where the remuneration paid to the fund manager is lower than the amount of remuneration prescribed, but is at arm’s length, it shall be sufficient compliance of section 9A of the Act.

The application for lower remuneration for the year 2021-22, if any, may be filed not later than 151 February, 2021.