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Sep 03, 2025
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CBDT extends I-T exemption window for sovereign wealth, pension funds till 2030
The Central Board of Direct Taxes (CBDT) on Tuesday extended the timelines for income tax exemption available to sovereign wealth funds (SWFs) and pension funds by six years.
The move allows these long-term global investors to claim benefits on eligible investments made in India till March 31, 2030. Earlier, the Department of Revenue had formalised a similar extension through a notification in July, following up on an announcement first made in the Union Budget earlier this year.
Under Section 10(23FE) of the Income Tax Act, introduced in 2020, notified SWFs and pension funds are exempted from paying tax on dividends, interest, and long-term capital gains arising from their investments in specified infrastructure businesses, subject to certain conditions.
The scheme, effective from April 1, 2020, was designed to attract large, stable pools of capital into critical infrastructure projects in India.
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