The Central Board of Direct Taxes on 15th April 2021 has published the Income-tax (10th Amendment) Rules, 2021 which has notified Form No. 10BBA in respect of Application for Pension Fund and investment in terms of clause (23FE) of section 10 of the Income-tax Act, 1961.
Under rule 2DB of Income- tax Act, 1961 the pension fund shall be required to satisfy the following conditions.
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 that the above condition shall not apply to any payment made to creditors or depositors for loan taken or borrowing for the purposes other than for making investment in India.
