The seventh proviso to Sec. 10(23FE) restricts exemption in case the specified fund has loans, directly or indirectly, for the purposes of making the investment in India. The term ‘indirectly’ is not defined by Act. Thus, CBDT has clarified that if the loans and borrowings have been taken by the specified fund or any of its group concerns, specifically for the purposes of making an investment by the specified fund in India, such fund shall not be eligible for exemption under section 10(23FE).The seventh proviso to Sec. 10(23FE) restricts exemption in case the specified fund has loans, directly or indirectly, for the purposes of making the investment in India. The term ‘indirectly’ is not defined by Act. Thus, CBDT has clarified that if the loans and borrowings have been taken by the specified fund or any of its group concerns, specifically for the purposes of making an investment by the specified fund in India, such fund shall not be eligible for exemption under section 10(23FE).taxmann.com Latest Statutory HappeningsRead More