CBDT extends tax relief for SWFs, pension funds to March 31, 2025

Rate this post

The Central Board of Direct Taxes (CBDT) has extended the tax relief for sovereign wealth funds (SWFs) and pension funds by a year to March 31, 2025, against the previous expiry of March 31, 2024.

With the changes, the funds can now enjoy exemption from tax on dividend income, interest income, or long-term capital gains tax arising from investments made in India.



Though the announcement was first made in the interim budget earlier this year, the tax authority notified the changes on July 18.

“While it’s a move that will be welcomed by the infrastructure sector and infrastructure funds, given the long haul of these projects and India’s long-term aspirations, the extension should have been considered for a longer duration as the investment needs are unlikely to be met in one year,” said Experts

Section 10(23FE) of the Income Tax Act provides an exemption to sovereign wealth funds and pension funds (specified fund) on income from dividends, interest, and long-term capital gains from investment in infrastructure made in India after April 2020.

As per data on NSDL, sovereign wealth funds’ assets under custody as of June stood at Rs 5.25 trillion, while that for pension funds was to the tune of Rs 6.02 trillion.

However, funds have to meet certain conditions to avail the tax relief.

Source link

Visit www.cagurujiclasses.com for practical courses




Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

Disclaimer:- The opinions presented are exclusively those of the author and CA Guruji Classes. The material in this piece is intended purely for informational purposes and for individual, non-commercial consumption. It does not constitute expert guidance or an endorsement by any organization. The author, the organization, and its associates are not liable for any form of loss or harm resulting from the information in this article, nor for any decisions made based on it. Furthermore, no segment of this article or newsletter should be employed for any intention unless granted in written form, and we maintain the legal right to address any unauthorized utilization of our article or newsletter.

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

Leave a Comment