The income tax (I-T) department has notified tax exemption on interest, dividend and capital gain incomes of sovereign wealth funds (SWFs) and global pension funds arising from their investment in Indian infrastructure.
The Central Board of Direct Taxes (CBDT) through a notification dated July 6 has widened the scope of ‘infrastructure’ for the purpose of claiming income tax exemption under Section 10 (23FE) of the I-T Act introduced via the Finance Act 2020. It is a statutory body constituted under the Department of Revenue to issue clarifications and notification w.r.t. to levy of direct taxes on the assessee.
The Central Board of Direct Taxes notified the amendment, which was first announced in the Union Budget by FM Nirmala Sitharaman in February, and has widened the definition of infrastructure to include sub-sectors of transport, logistics, energy, water and sanitation, communication, social and commercial infrastructure.
This notification shall come into force from April 1, 2021, and shall be applicable for the assessment year (AY) 2021-22 and subsequent AYs, the CBDT said.
“Considering India’s need for huge investment in infrastructure this will attract sovereign funds to a more diverse range of infrastructure companies into sectors like telecom, energy, logistics, hospitals, cold chains, etc,” Amit Maheshwari, tax partner at AKM Global said.
Understanding & keeping in mind the times that we are in, we have further extended deadlines. Now, filing of ITR for FY 2019-20 is extended to 30th Nov, 2020. We do hope this helps you plan things better.#ITDateExtension#FacilitationDuringCovid#WeCare #IndiaFightsCorona pic.twitter.com/ZoGBpok3V7
— Income Tax India (@IncomeTaxIndia) July 4, 2020
