The B&B Regulatory Updates #4: CBDT amends Income-tax Rules, Aadhar Bill & more

Bar & Bench will bring you the latest regulatory and policy updates from different ministries and regulatory authorities. In this edition of the Bar & Bench Regulatory Updates, we analyse the latest MCA and CBDT notifications and the Aadhar Bill..CBDT.The Central Board of Direct Taxes (“CBDT”) issued a notification dated 15 March 2016 inserting a new rule 10V in the Income-tax Rules, 1962 providing the regulatory framework within which the scheme of Section 9A relating to such entities will operate. As a pretext, Section 9A of the Income-tax Act, 1961 was introduced by the Finance Act, 2015 as per which an offshore fund shall not be construed to have a business connection in India or be considered as a person resident in India solely on account of an manager being situated in India..But in order to avail this benefit, certain onerous conditions were imposed which have been relaxed pursuant to the said notification. The notification has also introduced an optional pre-approval mechanism whereby the managers can apply to the CBDT to get clarity on tax liability before starting operations..MCA Notification.The Ministry of Corporate Affairs issued a notification on 23 March 2016 authorising the Central Registration Centre (“CRC”) (established vide notification dated 22 January 2016) to exercise jurisdiction of processing and disposal of e-Forms and all related matters pertaining to registration of companies under sections 7, 8 and 366 of the Companies Act, 2013..The jurisdictional Registrar shall continue to have jurisdiction over the companies incorporated by the Registrar, CRC for all provisions other than for processing and approval of name or names proposed in e-Form number INC-29..Aadhar Bill.The Aadhar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 (“the Bill“) which was introduced in the Lok Sabha on 3 March 2016 was passed on 16 March 2016. The Bill inter alia:.Provides for the eligibility criteria;Seeks to make the use of Aadhar number mandatory for availing government subsidies;Provides for the rules governing the composition and functions of the Unique Identification Authority of India;Addresses concerns regarding privacy and protection of personal information;Enlists cases when information may be revealed;Lays down the provisions for offences and penalties for unauthorised access to the centralised database..The full text of the Bill is provided below.