Offshore funds can now appoint fund managers in India without the risk of being treated as a resident for tax purposes. The Central Board of Direct Taxes has now notified rules to provide for a special taxation regime from April 1 that would facilitate location of fund managers of offshore funds in India "Under this regime, the fund management activity carried out through an eligible fund manager in India by an eligible investment fund does not constitute business connection in India of the fund and also does not lead to the residence of the fund in India," said the CBDT in a release on Wednesday. The move comes after Finance Minister Arun Jaitley had in the Union Budget 2015-16 announced modification of the permanent establishment norms and to provide a more beneficial tax regime to such funds.