{"id":5659,"date":"2018-03-19T18:35:48","date_gmt":"2018-03-19T13:05:48","guid":{"rendered":"https:\/\/www.hostbooks.com\/in\/?p=5659"},"modified":"2018-08-09T16:23:18","modified_gmt":"2018-08-09T10:53:18","slug":"rule-20a-guidelines-approval-28under-clause-xx-sub-section-2-section-80c-clause-xvii-sub-section-2-section-88","status":"publish","type":"post","link":"https:\/\/www.hostbooks.com\/in\/hb\/all-rules\/rule-20a-guidelines-approval-28under-clause-xx-sub-section-2-section-80c-clause-xvii-sub-section-2-section-88\/","title":{"rendered":"Rule &#8211; 20A, Guidelines for approval 28[under clause (xx) of sub-section (2) of section 80C or] under clause (xvii) of sub-section (2) of section 88"},"content":{"rendered":"<p><strong>20A<\/strong>. (1) For the purpose of <sup>28<\/sup>[clause (xx) of sub-section (2) of section 80C or] clause (xvii) of sub-section (2) of section 88, the prescribed authority shall be the Central Board of Direct Taxes.<\/p>\n<p>(2) An application for approval shall be made in Form No. 59A by the Mutual Fund to the Board referred in sub-rule (1) three months before the public issue.<\/p>\n<p>(3) Every application for approval under sub-rule (2) shall be accompanied by the following documents, namely :\u2014<\/p>\n<p style=\"padding-left: 30px;\">(a) audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made :<br \/>\nProvided that where a Mutual Fund has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence;<br \/>\n(b) a copy of the certificate of registration issued by the Securities and Exchange Board of India.<\/p>\n<p>(4) Every such Mutual Fund shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :\u2014<\/p>\n<p style=\"padding-left: 30px;\">(i) twenty-five per cent or more of such capital shall be invested in the &#8220;eligible issue of capital of any company&#8221; referred to in <sup>28<\/sup>[clause (i) of Explanation to clause (xix) of sub-section (2) of section 80C or in] clause (i) of Explanation to clause (xvi) of sub-section (2) of section 88, before the end of one year from the date of approval of the Board;<br \/>\n(ii) the balance of such capital shall be invested within a period of three years from the date of approval.<\/p>\n<p>(5) Every such Mutual Fund shall submit a certificate from an accountant, as defined in the Explanation to sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.<\/p>\n<p>(6) The Board shall pass an order in writing granting approval or refusing approval to such Mutual Fund, as the case may be :<\/p>\n<p>Provided that no order of refusing approval shall be passed by the Board without an opportunity of being heard given to the Mutual Fund.<\/p>\n<p>(7) The Board shall have the power to withdraw the approval granted under sub-rule (6) under the following circumstances, namely :\u2014<\/p>\n<p style=\"padding-left: 30px;\">(a) if such Mutual Fund fails to make investments as mentioned in sub-rule (4); or<br \/>\n(b) if such Mutual Fund fails to file the certificate referred to in sub-rule (5).<\/p>\n<p>Reference: www.incometaxindia.gov.in<\/p>\n<div class=\"section the_content has_content\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>20A. (1) For the purpose of 28[clause (xx) of sub-section (2) of section 80C or]<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":68,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1439,1440],"tags":[],"yst_prominent_words":[1939,8070,8080,6474,6239,8073,3553,8071,8081,3341,3445,3257,8079,3324,2421,8074,8075,871,461,8069],"_links":{"self":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5659"}],"collection":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/comments?post=5659"}],"version-history":[{"count":1,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5659\/revisions"}],"predecessor-version":[{"id":7067,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/5659\/revisions\/7067"}],"wp:attachment":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media?parent=5659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/categories?post=5659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/tags?post=5659"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/yst_prominent_words?post=5659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}